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TMI Blog2018 (6) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... orporate insolvency resolution process, we direct the Adjudicating Authority to exclude 166 days for the purpose of counting the period of corporate insolvency resolution process and thereby allow the Resolution professional / Committee of Creditors further 166 days with immediate effect (i.e. 8th May, 2018) to complete the corporate insolvency resolution process. - Company Appeal (AT) (Insolvency) No. 185 of 2018 - - - Dated:- 8-5-2018 - Mr. S.J. Mukhopadhaya And Mr. Bansi Lal Bhat, JJ. For The Appellant : Mr. Arun Kathpalia, Senior Advocate assisted by Mr. Rudreshwar Singh, Mr. Swapnil Gupta, Mr. Ujjal Banerjee and Ms. Ankita Sinha, Advocates For The Respondent : Mr. Abhijeet Sinha, Mr. Niraj Kumar and Mr. Shashank Agarwal, Advocates And Ms. Ranjana Ray and Mr. Pervinder, Advocates JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. The appellant Financial Creditor has preferred this appal for modification of order dated 27th April, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, Hyderabad in C.P. (IB) No. 97/7/HDB/2017 relevant portion of which reads as follows : In CP (IB) 97/7/HDB/2017 as stated sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solution process could proceed. 4. The appellant has brought on record the time chart to suggest the delay, as took place as follows: S.NO. DATE STAGE DAYS A. Between 11.08.2017 21.08.2017 Initiation of CIRP, Order copy made available. 10 days B. Between 23.08.2017 15.09.2017 IRP took charge, CoC constituted 22 days C. Between 15.09.2017 28.02.2018 Interim Stay of the proceedings of the First CoC; followed by change of Resolution Professional and further stay on CoC meetings 166 days D. Between 29.02.2017 27.04.2018 Vacation of Stay, Invitation of EOIs. EoI period needs to be extended as some applicants have come forward beyond time and only one EoI received in time. 57 days E . 27.04.2018 Ld. Adjudicating Authority fails to exclude time spent in litigation from CIRP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the committee of creditors by a majority vote of 75% of the voting shares, instructing the resolution professional to file an application for extension of period in such case, in the interest of justice and to ensure that the resolution process is completed following all the procedures time should be allowed by the Adjudicating Authority who is empowered to extend such period up to 90 days beyond 180th day. 5. In the present case, the Adjudicating Authority has not hold that the subject matter of the case do not justify to extend the period. It has not been rejected on the ground that the committee of creditors or resolution professional has not justified their performance during the 180 days. In such circumstances, it was duty on the part of the Adjudicating Authority to extend the period to find out whether a suitable resolution plan is to be approved instead of going for liquidation, which is the last recourse on failure of resolution process. 6. For the aforesaid reasons, we set aside the impugned order dated 18th December, 2017 and extend the period of resolution process for another 90 days to be counted from today. The period between 181st day and passing of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and circumstances of each case. 9. From the decisions aforesaid, it is clear that if an application is filed by the Resolution Professional or the Committee of Creditors or any aggrieved person for justified reasons, it is always open to the Adjudicating Authority/Appellate Tribunal to exclude certain period for the purpose of counting the total period of 270 days, if the facts and circumstances justify exclusion, in unforeseen circumstances. 10. For example, for following good grounds and unforeseen circumstances, the intervening period can be excluded for counting of the total period of 270 days of resolution process:- (i) If the corporate insolvency resolution process is stayed by a court of law or the Adjudicating Authority or the Appellate Tribunal or the Hon ble Supreme Court. (ii) If no Resolution Professional is functioning for one or other reason during the corporate insolvency resolution process, such as removal. (iii) The period between the date of order of admission/moratorium is passed and the actual date on which the Resolution Professional takes charge for completing the corporate insolvency resolution process. (iv) On hearing a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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