9911796707
TMI Blog2019 (11) TMI 1470X X X X Extracts X X X X X X X X Extracts X X X X ..... rments made by the Applicant in the Application, it is evident that the Applicant has already received a Resolution Plan from CSL in relation to the Corporate Debtor It is also pointed out that the Corporate Debtor is engaged in the high niche area. However, it is also pointed out that there is likelihood of more Resolution Applicants also filing the Resolution Plans, all of which will enable the Corporate Debtor to resolve its Insolvency instead of letting the Corporate Debtor into Liquidation. This Application stands allowed and the period of CIR Process is extended by a further period of 45 days as sought for by the Applicant - Application allowed. - MA/1264/2019 in CP/738/2018 - - - Dated:- 20-11-2019 - R. Varadharajan, Member (J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of 60 days and hence, taking into consideration the amendment made to Section 12 of the Insolvency and Bankruptcy Code, 2016 (in short, I B Code, 2016) on and from 16.08.2019 and upon the decision of the CoC, a Miscellaneous Application in MA/871/2019 was filed before this Authority and considering the provisions of Section 12 of the I B Code, 2016 as amended, this Authority vide its Order dated 21.08.2019, has granted a further exclusion of 85 days and the CIR Process was supposed to end on 14.11.2019. 4. Despite the best efforts of the Resolution Professional and the CoC, it is represented that completion of the CIR Process of the Corporate Debtor even after exclusion of 85 days period, is not possible within 14.11.2019. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional shall file an application to the Adjudicating Authority to extend the period of the corporate insolvency resolution process beyond one hundred and eighty days, if instructed to do so by a resolution passed at a meeting of the committee of creditors by a vote of [sixty-six] per cent of the voting shares. (3) On receipt of an application under subsection (2), if the Adjudicating Authority is satisfied that the subject matter of the case is such that corporate insolvency resolution process cannot be completed within one hundred and eighty days, it may by order extend the duration of such process beyond one hundred and eighty days by such further period as it thinks fid, but not exceeding ninety days: Provided that any extension ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and from 16.08.2019, if the period of 330 days had elapsed, then, in any case, the CIR Process to be completed within a period of 90 days from the said date. 8. Recently, the Hon'ble Supreme Court in the matter of Committee of Creditors of Essar Steel India Limited Vs. Satish Kumar Gupta Ors., in Civil Appeal No. 8766-67 of 2019, had an occasion to consider the amendments to Section 12 of the I B Code, 2016 by virtue of the Insolvency and Bankruptcy Code (Amendment) Act, 2019. Since it is relevant for the case on hand, as to whether the above Provisos are to be considered as mandatory or directory in nature, has observed under Paragraph 79 of its Judgement, the relevant portion of which alone is extracted as follows:- 79 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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. 9. From the above, it is evident that even though ordinarily the CIR Process has to be completed within the period of 330 days, however, under certain exceptional circumstance, one being that, if the Applicant is able to show to this Authority that only a short period is left for completion of the CIR Process beyond 330 days and that in the interest of all stakeholders to the Corporate Debtor be put back on its feet instead of b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
