2021 (6) TMI 119 - Tri - Insolvency and Bankruptcy

Seeking grant of exclusion of further 15 days from the period of Corporate Insolvency Resolution Process which is expiring on 14.01.2021 - Section 60(5) of Insolvency Bankruptcy Code, 2016 - HELD THAT - Considering the submissions made by the RP and the stage of the CIRP process, the Bench deems it fit and proper to exclude 15 days as a special case from the CIRP period so as to enable the RP to complete the remaining CIRP process. The Application is allowed for exclusion of 15 days from the CIRP period i.e. from 15.01.2021 to 29.01.2021 after having considered the steps already taken by the RP and the current stage of CIRP in respect of M/s. PPS Enviro Power Pvt. Ltd.

Summary

Issues:
- Application for exclusion of further 15 days from the period of Corporate Insolvency Resolution Process.
- Interpretation of relevant clauses for exclusion of certain periods in CIRP process.
- Impact of lockdown period extension on CIRP timeline.
- Consideration of special circumstances for exclusion of additional time in CIRP process.

Analysis:
1. The Resolution Professional filed an application seeking exclusion of 15 days from the Corporate Insolvency Resolution Process (CIRP) period, which was expiring on a specific date. The application was made under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, to grant additional time for completing the CIRP process.

2. The application outlined various reasons for seeking the exclusion, including the need for further discussions with the Committee of Creditors to enhance the Resolution Plan, achieve maximization of asset value, and ensure the continuity of the Corporate Debtor's operations for the benefit of stakeholders and employees.

3. The Resolution Professional referred to relevant legal provisions and relied on the Order of the Hon'ble NCLAT in a specific case to justify the request for exclusion of the additional 15 days from the CIRP period.

4. The Government of Tamil Nadu had extended the lockdown period, impacting the overall timeline of the CIRP process. The Resolution Professional highlighted this extension and its implications on the completion date of the CIRP.

5. After considering the submissions and the stage of the CIRP process, the Bench decided to allow the application for the exclusion of 15 days as a special case. The exclusion was granted to facilitate the Resolution Professional in completing the remaining CIRP process effectively.

6. The Tribunal directed the Resolution Professional to ensure the timely completion of the CIRP process within the extended timeline, emphasizing the importance of adhering to the revised schedule for the benefit of all stakeholders involved in the resolution proceedings.