2020 (9) TMI 834 - Tri - Insolvency and Bankruptcy

Exclusion of a period of 21 days from CIRP period - Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The applicant is seeking an extension of 21 days in completion of Corporate Insolvency Resolution Process. Since, there is scope for revival of Corporate Debtor and approval of a Resolution Plan, we are of view that exclusion of 21 days ought to be granted. The period of 21 days is excluded from the Corporate Insolvency Resolution Process - application allowed.

Summary

Issues Involved:
- Exclusion of time period from the Corporate Insolvency Resolution Process under Section 60(5) of the Insolvency and Bankruptcy Code, 2016.
- Interpretation of the Supreme Court judgment regarding the extension of time for Corporate Insolvency Resolution Process beyond 330 days.
- Committee of Creditors decision to file for exclusion of 21 days in the Corporate Insolvency Resolution Process.
- Prayer for exclusion of 21 days from the Corporate Insolvency Resolution Process.

Analysis:

1. Exclusion of Time Period:
The Resolution Professional filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking exclusion of a period of 21 days from the Corporate Insolvency Resolution Process. This request was based on the delay in the appointment of the Interim Resolution Professional (IRP) after the Order of admission was passed. The Tribunal had previously allowed exclusion of 57 days, and in this case, the applicant cited an outbreak of fire in the captive power plant of the Corporate Debtor as a reason for seeking additional time. The Tribunal, considering the ongoing nature of the Corporate Debtor and the possibility of a Resolution Plan, granted the extension of 21 days as requested.

2. Interpretation of Supreme Court Judgment:
Reference was made to a judgment of the Hon'ble Supreme Court regarding the extension of time for Corporate Insolvency Resolution Process beyond 330 days. The Supreme Court had highlighted that Adjudicating Authorities have the discretion to grant extensions even beyond the specified period if it serves the interest of stakeholders and aims to revive the Corporate Debtor. This interpretation was crucial in the present case to support the Resolution Professional's request for additional time.

3. Committee of Creditors Decision:
The Committee of Creditors had unanimously decided in a meeting to authorize the Resolution Professional to file for exclusion of 21 days in the Corporate Insolvency Resolution Process. This decision was based on the consensus that seeking additional time would benefit the stakeholders and contribute to the revival of the Corporate Debtor. The Resolution Professional subsequently filed the application in line with the decision of the Committee of Creditors.

4. Prayer for Exclusion of 21 Days:
The Resolution Professional's prayer in the application was twofold: to exclude a period of 21 days from the Corporate Insolvency Resolution Process and to request any other Orders deemed fit by the Tribunal in the interest of equity, justice, and good conscience. The Tribunal, after considering the submissions and documents presented, granted the exclusion of 21 days, emphasizing the potential for the revival of the Corporate Debtor and the approval of a Resolution Plan.

In conclusion, the Tribunal allowed the application for exclusion of 21 days from the Corporate Insolvency Resolution Process, aligning with the decisions of the Committee of Creditors and the interpretation of relevant legal provisions and judgments.