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2021 (8) TMI 10 - Tri - Insolvency and BankruptcyExclusion of period of 60 days from the total period of 90 days granted by the Hon'ble Tribunal, thereby extending the CIRP period upto 24.08.2021 - HELD THAT - Considering the facts and circumstances as averred by the Applicant and Resolution passed by the Committee of Creditors (COC) for exclusion of 60 days period from the 90 days period granted by this Adjudicating Authority vide its order dated 25.03.2021, we are inclined to allow the instant application as there is a strong possibility of either submission and approval of a Resolution Plan by the COC or withdrawal of application for admission under Section 12A of the Code. The primary objective of the Code is to resolve insolvency of a Corporate Debtor so as to allow it to continue as a going concern. Since as per the averments of the Applicant, the resolution of the Corporate Debtor is imminent, the RP is allowed to complete the CIRP process on or before 24.08.2021, failing which, the RP should submit an application under Section 33 of the Code. Application disposed of.
Issues:
1. Exclusion of time period in the CIRP process under the Insolvency and Bankruptcy Code, 2016. Analysis: The Interlocutory Application (IA) No. 306 of 2021 was filed by the Resolution Professional of a Corporate Debtor seeking to exclude 60 days from the total 90 days granted by the Tribunal to extend the Corporate Insolvency Resolution Process (CIRP) period up to 24.08.2021. The Applicant had previously filed applications for exclusion of periods due to Covid-19 and stay orders by the High Court. The Adjudicating Authority directed the RP to complete the entire CIRP within 90 days from the date of the order, allowing plans from all Prospective Resolution Applicants. The Applicant detailed various steps taken since the initiation of the CIRP, including dealing with applications from the Suspended Director/Promoter and legal challenges in the High Court and the Apex Court. Despite challenges, the RP proceeded with the CIRP, inviting Expression of Interest (EOI) and receiving applications from 11 Prospective Resolution Applicants. However, due to the second wave of Covid-19 and technical information requests from Applicants, the RP faced constraints in the process. The Committee of Creditors (COC) considered the possibility of withdrawal under Section 12A of the Code due to the payment made by the Suspended Board of the Corporate Debtor to lender banks. The COC extended the submission deadline for Resolution Plans and authorized the RP to file the application for excluding 60 days from the CIRP period. The COC resolution reflected the intent to approach the Tribunal for an extension beyond the previous order. After hearing the arguments and considering the COC resolution, the Tribunal allowed the application for exclusion of 60 days from the 90-day period, emphasizing the importance of resolving insolvency to allow the Corporate Debtor to continue as a going concern. The RP was granted time until 24.08.2021 to complete the CIRP, with instructions to submit an application under Section 33 of the Code if unable to meet the deadline. In conclusion, the Tribunal granted the relief sought by the Applicant, acknowledging the imminent resolution of the Corporate Debtor and the need to adhere to the timelines set under the Insolvency and Bankruptcy Code, 2016.
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