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TMI Blog2020 (10) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... of certain time period for the purpose of counting the total CIRP period - it was held 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. In addition to the above judgement, the judgement of Apex Court, Committee of Creditors of Essar Steel India Limited Vs. Satish Kumar Gupta Ors. [ 2019 (11) TMI 731 - SUPREME COURT ] has conferred power on the Adjudicating Authority to consider issue of exclusion time from statutory period p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the Regulation 36A(1) of the CIRP Regulation, the Resolution Professional had published Form G in leading newspapers inviting Expression of Interest from prospective Resolution Applicants and the last date for submission of Resolution Plan was extended from 30th November, 2019 to 7th December, 2019. (2) It is stated that the Adjudicating Authority has extended the period of CIRP by 90 days beyond the 180 days, vide Order dated 20.09.2019 and also granted exclusion of period of 154 days (delay caused by the stay of the Hon'ble Supreme Court) and later 54 days (delay caused by the stay of Hon'ble High Court of Karnataka, vide separate Orders dated 06.05.2019 and 12.12.2019 respectively. (3) It is stated that the Resolution Profes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od for no fault of the litigant, a provision which mandatorily requires the CIRP to end by a certain date - without any exception thereto - may well be an excessive interference with a litigant's fundamental right to non-arbitrary treatment under Article 14 and on excessive, arbitrary and therefore unreasonable restriction on a litigant's fundamental right to carry on business under Article 19(1)(g) of the Constitution of India. This being the case, we would ordinarily have struck down the provision in its entirety. However, that would than throw the baby out with the bath water, in as much as the time taken in legal proceedings is certainly 131 important factor which causes delay, and which has made previous statutory experiments f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority and/or Appellate 132 Tribunal to extend time beyond 330 days. Likewise, even under the newly added proviso to Section 12, if by reason of all the aforesaid factors the grace period of 90 days from the date of commencement of the Amending Act of 2019 is exceeded, there again a discretion can be exercised by the Adjudicating Authority and/or Appellate Tribunal to further extend time keeping the aforesaid parameters in mind. It is only in such exceptional cases that time can be extended the general rule being that 330 days is the outer limit within which resolution of the stressed assets of the Corporate Debtor must take place beyond which the Corporate Debtor is to be driven into liquidation. (5) It is submitted that the CoC in its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) (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/ morato ..... X X X X Extracts X X X X X X X X Extracts X X X X
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