9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 354 - Tri - Insolvency and BankruptcyContinuation of Liquidation Process - exclsusion of time period between February 20, 2020 to November, 30, 2020 from calculation of 365 days/One year as provided under Regulation 44 of the IBBI (Liquidation Process) Regulations, 2016 - HELD THAT - In the Report No.100/KOB/2020, regarding E Auction conducted on 30th September, 2020 it is stated that No bid has come for Asset Blocks numbered 1 to4 ie., Land and Building and Plant and Machinery. There were many interested buyers who had shown interest, however one of the reasons for the bid not being received could be due to a demonstration in front of the factory on 4.9.2020 by few workmen/employees which was also published in the newspaper in Kochi and that have scared away the prospective buyers to come forward. As mandated in Regulation 44(2) a report explaining why the liquidation has not been completed and specifying the additional time that shall be required for liquidation. The applicant is permitted to continue with the liquidation process - The period between February 20,2020 to November, 30,2020 is excluded from calculation of 365 days/One year as provided under Regulation 44 of the IBBI (Liquation Process) Regulations, 2016 for completing the Liquidation Process, following the norms prescribed in the Regulations. Application disposed off.
Issues:
Liquidator seeking direction to continue liquidation process as per Tribunal's order & exclusion of lockdown period from calculation of 365 days under Regulation 44 of IBBI Regulations. Analysis: The Liquidator filed a Miscellaneous Application (M.A) under Section 60(5) of IBC, 2016 and Regulation 44(2) of IBBI(LP) Regulations 2016 to seek directions to continue the liquidation process and exclude the period from February 20, 2020, to November 30, 2020, from the calculation of 365 days as per Regulation 44. The Liquidator was appointed by the Tribunal in a case filed by a Financial Creditor against the Corporate Debtor. The Liquidator initiated the liquidation process by making a public announcement for claim submissions. Workmen/employees of the Corporate Debtor approached the High Court, leading to a stay on the liquidation process, which was vacated later. The Liquidator cited the lockdown due to the Covid-19 pandemic and the High Court's directions as reasons for the delay in the liquidation process. The Liquidator explained the delay in the liquidation process in a detailed report, mentioning the High Court stay and the impact of lockdown measures on his ability to carry out duties. An 'E' Auction conducted on September 30, 2020, did not receive bids for certain assets, partly due to a demonstration by workmen/employees in front of the factory. The Liquidator complied with Regulation 44(2) by providing a report explaining the delay and the additional time required for liquidation, seeking directions from the Tribunal to exclude the lockdown period from the calculation of the one-year timeline for liquidation. After considering the submissions, the Tribunal permitted the Liquidator to continue with the liquidation process. The Tribunal also excluded the period from February 20, 2020, to November 30, 2020, from the calculation of 365 days as provided in Regulation 44 of IBBI (Liquidation Process) Regulations, 2016. The Tribunal disposed of the Miscellaneous Application accordingly on November 3, 2020, granting the requested reliefs to the Liquidator.
|
