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2021 (6) TMI 162 - Tri - Insolvency and BankruptcySeeking extension of CIRP period of 90 days beyond 180 days - HELD THAT - The reason shown for extension of the period of CIRP. Further, exclusion of certain period from CIRP appear to be reasonable and bona fide. Hence, the present IA 1350 of 2020 and IA 1365 of 2020 can be considered positively and deserves to be allowed. Application allowed.
Issues:
1. Exclusion of period for computing Corporate Insolvency Resolution Process (CIRP) 2. Extension of CIRP period due to Covid-19 lockdown 3. Consideration of Supreme Court's decision on exclusion of time for limitation period Exclusion of period for computing Corporate Insolvency Resolution Process (CIRP): The Applicant Resolution Professional (RP) filed applications seeking exclusion of the period between 01.06.2020 till 31.07.2020 for computing the CIRP period. The applications were based on grounds related to the Covid-19 lockdown situation. The RP requested an extension of the CIRP period for 90 days beyond the initial 180 days due to the lockdown affecting progress. The Tribunal reviewed the applications and the progress made during the CIRP, finding the reasons for extension and exclusion reasonable and bona fide. Consequently, the Tribunal considered the applications positively and allowed them under sections 12(2) and 60(5) of the Insolvency and Bankruptcy Code, 2016. Extension of CIRP period due to Covid-19 lockdown: The RP and the Committee of Creditors (CoC) faced challenges during the lockdown period as necessary information could not be obtained from the management. The applications for extension and exclusion of the CIRP period were made on 24.07.2020, after Unlock Phase I and II had commenced from 01.06.2020 in Maharashtra. The Tribunal acknowledged the impact of the pandemic on the CIRP process and the need for additional time to overcome the obstacles faced during the lockdown. The Tribunal found the grounds for extension and exclusion justifiable, leading to a favorable decision in allowing the applications. Consideration of Supreme Court's decision on exclusion of time for limitation period: During the proceedings, the Tribunal noted a subsequent development related to the Hon'ble Supreme Court of India's decision in Suo Motu Writ Petition (Civil) No. 3 of 2020. The Supreme Court had provided general exclusion of time for counting the limitation period in legal proceedings due to the Covid-19 period from 15.03.2020 till 14.03.2021. The Supreme Court's decision allowed an additional 90 days from 15.03.2021 for cases where the limitation would have expired during the specified period. The Tribunal recognized the Supreme Court's verdict and its implications on the CIRP period, ensuring that the RP's grievance was addressed by the Supreme Court's decision. Consequently, the Tribunal aligned its decision with the Supreme Court's judgment, allowing the RP's applications and granting the necessary extension for the CIRP period. In conclusion, the Tribunal's judgment addressed the challenges faced during the Covid-19 lockdown by allowing the exclusion and extension of the CIRP period as requested by the RP. The decision was in line with the provisions of the Insolvency and Bankruptcy Code, 2016, and took into account the Supreme Court's directive on the exclusion of time for limitation periods during the pandemic.
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