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2022 (4) TMI 1038 - Tri - Insolvency and BankruptcyExtension of time of CIRP as permitted under section 12 of the Code - exclusion of 35 days lost due to the stay granted by the Hon'ble High Court - HELD THAT - In view of the Resolution passed by CoC, this Adjudicating Authority deems it fit to exclude a period of 33 days, as resolved by CoC. Thus, a period of 33 days is hereby excluded. Application disposed off.
Issues:
Interlocutory Application seeking extension of time for Corporate Insolvency Resolution Process (CIRP) under section 12 of the Insolvency and Bankruptcy Code, 2016 due to stay granted by High Court. Detailed Analysis: Issue 1: Interlocutory Application for Extension of Time The Interlocutory Application (IA) was filed seeking an exclusion of 35 days from the CIRP timeline to complete the resolution process of the Corporate Debtor. The Applicant, a Resolution Professional, invoked section 12 of the Insolvency and Bankruptcy Code, 2016, to extend the CIRP period beyond the stipulated 180 days. The application was based on the delay caused by a stay granted by the High Court, hindering the progress of the insolvency proceedings. Issue 2: Brief Facts and Legal Proceedings The Applicant provided a summary of events, including the admission of the insolvency application, appointment of an Interim Resolution Professional (IRP), and subsequent legal challenges by the suspended director of the Corporate Debtor. The suspended director's actions, such as filing appeals and obtaining stays from different judicial bodies, caused delays in the CIRP process. The Resolution Professional sought approval from the Committee of Creditors (CoC) to move the application for extending the CIRP timeline, as per the provisions of the Code. Issue 3: Committee of Creditors' Resolution The CoC, in its third meeting, passed a resolution to exclude a period of 33 days from the CIRP timeline due to the interim stay granted by the High Court. This resolution was made in accordance with Section 12 of the Code and Section 60(5) of the Code. The Resolution Professional presented this resolution as part of the application for extension of time. Issue 4: Adjudicating Authority's Decision After hearing the submissions and reviewing the record, the Adjudicating Authority approved the exclusion of the 33-day period as resolved by the CoC. The Authority acknowledged the circumstances leading to the delay in the CIRP process and deemed it appropriate to grant the extension requested by the Resolution Professional. Consequently, the Application was disposed of, and the extension of time was granted to facilitate the completion of the Corporate Insolvency Resolution Process. In conclusion, the Tribunal, based on the Resolution passed by the CoC and the circumstances presented, granted the exclusion of the specified period from the CIRP timeline, allowing for the continuation and successful completion of the resolution process for the Corporate Debtor.
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