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2021 (10) TMI 814 - Tri - Insolvency and BankruptcySeeking exclusion of time period from CIRP - section 12(2) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - In the facts of the present case, it is to be noted that this Tribunal already vide its order dated 16.04.2021, has granted exclusion of lockdown period starting from 25.03.2020 to 31.12.2020. However, the present application has been moved by the Applicant seeking further exclusion of the lockdown period from 10.05.2021 to 14.06.2021 - From the facts narrated, it is seen that the Resolution Plan is under consideration before the CoC members and as such it becomes necessary to extend the period of CIRP in order for the CoC to consider the Resolution Plan. It is also seen that the CoC is pondering on the Resolution submitted by the prospective Resolution Applicant as early as on 03.03.2021 and is yet to take a final call in relation to the same. Keeping in mind the facts of the present case and further in view of Regulation 40C of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, we hereby grant exclusion of CIRP period from 10.05.2021 till 14.06.2021 and also extend the CIRP period by 60 days from 17.06.2021 (total of 95 days). Therefore, the CIRP period in relation to the Corporate Debtor will come to an end on 20.09.2021. Application allowed.
Issues:
- Exclusion of time period during lockdown - Extension of time under section 12(2) of the Insolvency and Bankruptcy Code, 2016 - Other orders or directions deemed fit by the Hon'ble Bench Exclusion of Time Period During Lockdown: The Resolution Professional filed an application seeking exclusion of the time period from 10.05.2021 to 14.06.2021 due to lockdowns and restrictions imposed by the State and Central Governments affecting the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The Tribunal had previously excluded the lockdown period from 25.03.2020 to 31.12.2020. Considering the ongoing CoC deliberations on the Resolution Plan, the Tribunal granted further exclusion from 10.05.2021 to 14.06.2021 and extended the CIRP period by 60 days, totaling 95 days. The CIRP period for the Corporate Debtor was extended to end on 20.09.2021. Extension of Time under Section 12(2) of the IBC, 2016: The Resolution Professional faced challenges due to the Covid-19 pandemic, leading to delays in CoC meetings and the valuation of the Corporate Debtor's assets. Despite the difficulties, CoC meetings were conducted through video conferencing. The Resolution Plan submission and review process faced delays, necessitating an extension of the CIRP period. The Tribunal, considering the circumstances and Regulation 40C of the IBBI Regulations, granted the requested extension and exclusion of the lockdown period, emphasizing the importance of completing the CIRP within the prescribed timelines under the Code. Other Orders or Directions Deemed Fit by the Hon'ble Bench: Apart from the exclusion and extension of the CIRP period, the Tribunal did not specify any other orders or directions deemed fit in the circumstances of the case. The focus of the judgment was primarily on addressing the challenges faced during the CIRP of the Corporate Debtor due to the Covid-19 pandemic and ensuring the completion of the resolution process within the extended timeline provided by the Tribunal.
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