9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 193 - Tri - Insolvency and BankruptcySeeking an order excluding a period of 221 days in computing the Liquidation period - section 60(5) of the IBC, 2016 read with Regulation 44 of the IBBI (Liquidation Process) Regulations 2016 read with Rule 11 of NCLT Rules, 2016 - HELD THAT - Upon perusing the documents, this Adjudicating Authority is of the view that as per Regulation 47AA IBBI (Liquidation Process) Regulations, 2016, the period from 24.03.2020 to 31.10.2020 are excluded from the time frame of Liquidation period. Application allowed.
Issues:
- Exclusion of a period in computing the Liquidation period under IBC, 2016 read with relevant regulations and rules. Analysis: The judgment pertains to an application filed under section 60(5) of the IBC, 2016 seeking exclusion of a specific period in computing the Liquidation period. The Applicant, who was appointed as the Liquidator of the Corporate Debtor, sought to exclude 221 days from 24.03.2020 to 31.10.2020 due to the impact of the COVID-19 pandemic. The Applicant argued that an arbitration proceeding initiated by the Corporate Debtor in 2008 against NTPC Limited, which remained unresolved, should not affect the liquidation process. The Applicant requested an extension of 6 months to complete the liquidation process beyond the initial one-year period set by the Adjudicating Authority. The Adjudicating Authority considered the provisions of Regulation 47AA of the IBBI (Liquidation Process) Regulations, 2016, which allow for the exclusion of certain periods from the Liquidation period. After perusing the documents and submissions, the Authority agreed with the Applicant's request and granted the exclusion of the period from 24.03.2020 to 31.10.2020 from the calculation of the Liquidation period. The application was allowed, providing the Applicant with the additional time needed to complete the liquidation process effectively. Overall, the judgment highlights the importance of considering exceptional circumstances, such as the COVID-19 pandemic, in the context of insolvency proceedings and the need for flexibility in adjusting timelines to ensure the efficient resolution of liquidation processes under the IBC, 2016 and relevant regulations and rules.
|
