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2021 (9) TMI 759 - Tri - Insolvency and BankruptcySeeking exclusion of 55 days from the timeline of Resolution Process - section 12 R/W Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The learned R.P has sought exclusion of 55 days time from the timeline of CIRP as approved by the CoC due to the number of litigations including the Writ Petitions filed before Hon ble High Court by the Suspended Directors, Appeal filed before Hon ble NCLAT by the CD and lockdown for the second wave of the Covid 2019. The reasons mentioned in the prayer for exclusion of 55 days from the timeline of the CIRP period are satisfactory. Hence exclusion of 55 (Fifty Five) days are hereby allowed from the timeline of the CIRP - application allowed.
Issues Involved:
1. Exclusion of 55 days from the timeline of the Corporate Insolvency Resolution Process (CIRP). 2. Impact of various litigations and interim orders on the CIRP timeline. 3. Approval of the Committee of Creditors (CoC) for the exclusion request. 4. Compliance with the Insolvency and Bankruptcy Code (IBC) timelines. Detailed Analysis: 1. Exclusion of 55 Days from the Timeline of CIRP: The Interim Resolution Professional (IRP) filed an application under Section 12 read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking exclusion of 55 days from the CIRP timeline. The exclusion was sought due to the writ petitions filed by the suspended Board before the Hon’ble High Court, interim orders restraining coercive steps by the IRP, an appeal filed before the Hon’ble NCLAT, and intermittent lockdowns imposed due to the Covid-19 pandemic. 2. Impact of Various Litigations and Interim Orders on the CIRP Timeline: The application for initiating CIRP was filed by the Punjab National Bank under Section 7 of the IBC and admitted by the Tribunal on 05.05.2021. Subsequently, a Director and member of the suspended Board filed a writ petition before the Hon’ble Guwahati High Court, seeking reliefs including the suspension of the order dated 05.05.2021. The High Court passed an order on 12.05.2021, directing the IRP not to take any coercive action against the Corporate Debtor until 21.05.2021. The IRP proceeded with the issuance of the public announcement on 13.05.2021, in accordance with the IBC regulations. On 22.05.2021, another Director filed an appeal before the Hon’ble NCLAT challenging the order of admission dated 05.05.2021. An interlocutory application was also filed before the High Court on 25.05.2021, seeking modification of the order dated 12.05.2021. The High Court extended the interim protection on 28.05.2021, directing the IRP not to take any coercive action until the appeal before the NCLAT was heard or until 15.06.2021, whichever was earlier. The interim protection was further extended by the High Court on 15.06.2021, until the NCLAT decided the applications on merit. The interim orders expired upon the final disposal of the appeal by the NCLAT on 29.06.2021. The NCLAT dismissed the appeal, stating that there was no substance in the claims made by the suspended Board. 3. Approval of the CoC for the Exclusion Request: The IRP convened the first meeting of the CoC on 11.06.2021, but no effective decision was taken due to the interim orders passed by the High Court. The IRP sought and obtained the approval of the CoC for the exclusion of 55 days from the CIRP timeline, citing the impact of the Covid-19 lockdown and the litigations initiated by the suspended Board. 4. Compliance with the IBC Timelines: The Tribunal observed that the reasons mentioned for the exclusion of 55 days from the CIRP timeline were satisfactory. Consequently, the exclusion was allowed, and the IRP was directed to ensure the completion of the CIRP within 180 days and find a viable resolution plan for the stressed assets without further loss of time. Orders: The Tribunal allowed the exclusion of 55 days from the CIRP timeline as prayed for by the IRP. The IRP was directed to ensure the completion of the CIRP within 180 days and to find a viable resolution plan for the stressed assets without further delay.
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