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2021 (1) TMI 617 - Tri - Insolvency and BankruptcySeeking direction to Committee of Creditors (CoC) and Resolution Professional (RP) to consider the Resolution Plan submitted by one M/s. Alkon Projects - HELD THAT - If we pass order of liquidation of the Corporate Debtor, it may prejudicially affect the rights of such Horne-buyers. Some of them may render to be home-less despite paying some amount to the Corporate Debtor. Hence, we have taken for consideration these two applications, so that we can set right the CIRP of the Corporate Debtor. Moreover, the application for liquidation of the Corporate Debtor filed by RP has not been supported confirmed final account and even 'by the resolution of the CoC. In this case, we are faced with the difficulty that CIRP period of 330 days has been over on 05.03.2020. Accordingly, RP has filed application for liquidation of the Corporate Debtor, but due to the declaration of 'Lock Down,' that application remained pending. In our considered view, since, the RP and CoC have received the resolution plans of one M/s. Alkon Projects, it would be appropriate if we direct the RP and CoC to consider the resolution plans first - in view of facts that the grievances of Some of the Home-Buyers/Plot-Holders can be addressed to. It is seen from the record that a period of 172 days was wasted due to pendency of application of RP for appointing an authorized representative of the Financial Creditors. It is seen from the record that RP could not hold CoC meeting during that period for want of corum and hence, that period has to be excluded from the CIRP period. Thereafter, when the matter was listed before this Adjudicating Authority, for the first time on 17.06.2020, the 'Lock-Down' was declared. Therefore, we stayed the proceedings. RP and CoC are directed to consider the Resolution Plan - application disposed off - The main matter to appear on 12.02.2021.
Issues:
1. Exclusion/extension of CIRP period 2. Consideration of pending resolution plan Analysis: 1. Exclusion/extension of CIRP period: The Tribunal dealt with two applications, one filed by an authorised person of Financial Creditors and the other by the Resolution Professional (RP), both seeking exclusion of specific periods from the total Corporate Insolvency Resolution Process (CIRP) period. The RP requested exclusion of 172 days due to delays in appointing an authorised representative and an additional 44 days when the CIRP was stayed. The Tribunal noted the checkered history of the case, including delays in CoC meetings and the RP's application for liquidation. Due to the COVID-19 pandemic and subsequent lockdown, proceedings were further delayed. The Tribunal found that certain periods were indeed wasted, and in line with the Insolvency and Bankruptcy Code, excluded these periods from the CIRP timeline. Citing relevant legal provisions and the Supreme Court's decision, the Tribunal directed the RP and CoC to consider the resolution plan first, emphasizing the importance of resolution over liquidation. 2. Consideration of pending resolution plan: The Tribunal emphasized the need to address the grievances of various stakeholders, including Home-Buyers, Plot-Holders, and creditors like the Union Bank of India, before passing any order related to the Corporate Debtor. Recognizing the potential impact on Home-Buyers if liquidation were to proceed, the Tribunal decided to focus on setting right the CIRP of the Corporate Debtor. The Tribunal highlighted that the RP's application for liquidation lacked support and final confirmation, leading to the decision to prioritize the consideration of the resolution plan submitted by M/s. Alkon Projects. Stressing the importance of addressing stakeholders' concerns, the Tribunal directed the RP and CoC to consider the resolution plan and grievances within a specified timeline of 60 days, ensuring a comprehensive review of all relevant aspects before the next hearing date. In conclusion, the Tribunal's judgment focused on balancing the interests of stakeholders, excluding specific periods from the CIRP timeline, and prioritizing the consideration of the resolution plan to achieve the objectives of the Insolvency and Bankruptcy Code. The detailed analysis provided insights into the Tribunal's reasoning, legal references, and the steps taken to ensure a fair and transparent resolution process for all parties involved.
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