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2021 (4) TMI 897 - Tri - Insolvency and BankruptcySeeking extension of CIRP by another 34 days - section 12(2) 12(3) of the Code r/w. Rule 11 of NCLT Rules, 2016 - HELD THAT - The total number of days from the admission of the Corporate Debtor to CIRP i.e., from 03.09.2019 to 21.02.2021 is 536 days. Till 08.04.2021, the total number of days from the admission of CIRP i.e., 03.09.2019 to 08.04.2021 is 582 days. Exemption of Covid period as per Section 40C of the Code from 25.03.2020 till 17.10.2020 is 206 days. The maximum period admissible under Section 12(2) 12(3) of the Code is 330 days. However, considering that this Applicant/RP had to undergo harassment and also criminal cases as a Resolution Professional in respect of M/s. Bhatia Coke and Energy Limited, the company under CIRP, considerable time and energy was lost. Hence, the Applicant could not effectively conduct the CIR process. Furthermore, the Covid-19 pandemic also does not permit effective operation of the CIR Process. This Adjudicating Authority grants extension of CIRP period till 08.04.2021, as per the provisions of Section 12(2) 12(3) of the IBC read with Rule 11 of NCLT Rules, 2016 - Application allowed.
Issues: Application for extension of Corporate Insolvency Resolution Process (CIRP) period under Sections 12(2) & 12(3) and Section 60(5) of the Insolvency and Bankruptcy Code, 2016.
Analysis: 1. The application was filed seeking an extension of the CIRP period by 34 days under the relevant provisions of the Insolvency and Bankruptcy Code, 2016. The resolution for extension was passed by the Committee of Creditors (CoC) with 100% voting in favor of the extension to provide time for analysis of the Resolution Plan and negotiations with Resolution Applicants. 2. The Applicant/RP highlighted that time was lost due to errors in the name of the Interim Resolution Professional and frivolous criminal complaints against the RP in another matter, resulting in delays. Additionally, there are pending Resolution Plans for approval, and the Corporate Debtor is being maintained as a going concern, necessitating consideration of Resolution Plans for better appreciation of the CIRP. 3. The total number of days from the admission of the Corporate Debtor to CIRP was detailed, along with exemptions due to the Covid-19 period. The maximum period admissible under Section 12(2) & 12(3) of the Code is 330 days. However, due to the RP's harassment and time lost in criminal cases, an extension was deemed necessary. The impact of the Covid-19 pandemic on the effective operation of the CIR Process was also considered. 4. The Applicant/RP had filed multiple applications seeking extensions of the CIRP period for various reasons, including the need for additional time as per the provisions of the Code. Based on the arguments presented and the affidavit filed, the Adjudicating Authority granted an extension of the CIRP period until a specified date in April 2021, in line with the relevant legal provisions. In conclusion, the judgment allowed the applications for extension of the CIRP period, taking into account the circumstances, delays, and the need for additional time to effectively conduct the Corporate Insolvency Resolution Process.
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