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TMI Blog2010 (1) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... s granted vide Order dated 03.10.2019 and the 270 days of CIRP expired on 18.01.2020. ii. The Applicant/RP has sought for exclusion of time stating that the entire process was marred in multiple litigations and valuable time was lost due to which the CIRP was negatively impacted. The grounds on which the exclusion is sought are as under:- a. The primary business of the Corporate Debtor is to run an independent power plant. The fuel source for the power plant is natural gas which is supplied by GAIL (India) Limited. The electricity generated at the power plant is supplied to Southern Power Distribution Company of Andhra Pradesh Limited and Eastern Power Distribution Company of Andhra Pradesh Limited (Hereinafter referred to as DISCOMS). b. That the RP has filed multiple Applications before this Adjudicating Authority seeking release of past dues by DISCOMS. Due to non-receipt of payments form DISCOMS, the payment for supply of fuel could not be made to GAIL and consequently, the supply of Gas was suspended by GAIL on 04.07.2019. Due to the aforesaid, the operations of the Corporate Debtor had come to standstill for a period from 04.07.2019 to 04.10.2019. c. The RP has fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the EoI was published on 06.07.2019. Last date for the submission of EoI was 21.07.2019 which was further extended to 17.08.2019. The RP has received EoIs from 9 potential Resolution Applicants. However, in view of the suspension of operations of phase-I of the project, pending litigation in relation to the recovery of payments from the DISCOMS, withdrawal of PPA and considerable uncertainty caused by such proceedings on the viability of the Corporate Debtor, only a single Resolution Plan was received for the Corporate Debtor from the consortium of iLabs Hyderabad Technology Centre Private Limited and iLabs Investment Trust. i. That it is during the period when the potential Resolution Applicants were visiting site of the Corporate Debtor, that phase I of the plant of the Corporate Debtor was non-operative due to the non-supply of gas by GAIL on account of failure of the Corporate Debtor to make payment to GAIL and the abovementioned litigations were ongoing. j. That there was only one Resolution Applicant and the commercial offer made by the resolution applicant was unacceptable to the committee of creditors of the Corporate Debtor ( CoC ) and accordingly the same was unani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Satish Kumar Gupta Ors. 2019 SCC OnLine SC 1478 whereby it was held that: 105. Given the fact that timely resolution of stressed assets is a key factor in the successful working of the Code, the only real argument against the amendment is that the time taken in legal proceedings cannot ever be put against the parties before the NCLT and NCLAT based upon a Latin maxim which sub-serves the cause of justice namely, actus curiae neminem gravabit. p. That in light of the present facts and circumstances unless the time period cosnsumed in litigation (as specified above) is excluded, the COC would not be in a position to consider, evaluate and approve the most beneficial resolution plan for the Corporate Debtor which in turn would cause immense loss, harm and damage to the Corporate Debtor and its stakeholders (including employees and workmen). q. That a prospective resolution applicant, I Squared Asia Advisors Pte. Ltd., who had submitted EOI for the submission of Resolution Plan for the Corporate Debtor has already expressed interest to submit a Resolution Plan for the Corporate Debtor and has requested for an extension of time for the submission of the Resolution Pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lution Applicants and as a result the single Resolution Plan which was received during the CIRP process was found to be non-acceptable by the CoC. 9. It has been stated that after the disposal of the aforesaid Applications bearing IA Nos. 637/2019, 740/2019 and 757/2019 by this Adjudicating Authority, the situation has changed and there are potential Resolution Applicants who have evinced interest in resolution of the Corporate Debtor. 10. The instant IA has been filed on the basis of an unanimous Resolution of CoC dated 14.01.2020 for seeking exclusion of time for considering the Resolution Plan of M/s. I squared Asia Advisors Pte. Ltd. who have made a request vide their letter dated 13.01.2020. 11. The issue of exclusion of time has been dealt with in detail by Hon'ble NCLAT in the matter of Quinn Logistics Private Limited vs. Mack Soft Tech Pvt. Ltd and Ors. in Company Appeal (AT) (Insolvency) No. 185 of 2018 wherein it has been held that if an Application is filed by the RP or the COC 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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