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TMI Blog2021 (2) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... on 30.11.2020 and the Resolution Professional have no power for seeking extension based on a letter submitted by the erstwhile Director or the potential Resolution Applicant, who has not submitted any credentials to the Resolution Professional to prove his net worth and interest in the matter. The underlying object and principle of the Code, in resolving a debt ridden Corporate Debtor, cannot be lost sight of. The adherence to specific timeline for resolution is the essence, which in effect would bring about successful resolution of a beleaguered Company. It is found that the invitation for EoI was widely published in two newspapers namely Indian Express and Kerala Kaumudhi , the last date of submission of EoI was 08.02.2020. The ground that the potential Resolution Applicant due to lack of knowledge failed to submit EOI within time cannot be accepted. Besides no indulgence can be given to someone who hasn t been vigilant enough. The Potential Resolution Applicant has not shown sufficient cause for its delay in submitting its EoI. Mere stating by the applicant herein that it is on account of Covid-19 Pandemic would not be considered as sufficient reason to condone the delay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the 1st Respondent Resolution Professional that the 1st Applicant can be merely an observer in the meeting and therefore request for an extension of time made by the applicants cannot be entertained. 5. Subsequently being conscious of the provisions of Section 12 of the Insolvency and Bankruptcy Code 2016, the 1st Applicant herein addressed another letter dated 25.11.2020 to the 3rd Respondent- Committee of Creditors and 1st Respondent-Resolution Professional requesting the Committee of Creditors to take up the request for an extension of time and pass a resolution with respect to the same as per Section 12 of the IBC, 2016. The 1st Applicant referred to the Orders of the Hon ble National Company Law Appellate Tribunal which was affirmed by the Hon'ble Supreme Court in the case of Quinn Logistics India Private Limited Vs. Mack Soft Tech Private Limited [(2018) 208Comp Cas 0432] wherein it was held that an extension of time for completion of CIRP, which will include an invitation for Expression of Interest (EoI) for a Prospective Resolution Application may be granted under exceptional circumstances and also listed various conditions under which the same can be granted. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicants and the eligibility criteria for Resolution Applicant and Evaluation matrix were resolved and voted in the CoC. Accordingly, Form G- EoI was published in Indian Express and Kerala Kaumudhi, Kochi Edition on 24.01.2020. The last date for receipt of duly filled in EOI was 08.02.2020. It is further stated that, till the last date on 08.02.2020, no request for EOI format was received by the Resolution Professional from any of the potential/prospective Resolution Applicants. However, on 12.02.2020 the Resolution Professional received an email from Mr. N. V. George, Chairman Managing Director, Geo Group of Companies, Sharjah, informing that he is interested in submitting a proposal and need a few days' time to submit the details. Through reply the EOI format and other details were forwarded by the Resolution Professional on 12.02.2020 informed him that the last date for submission of EOI is already over and as regards extension of time, the same is subject to approval/concurrence of Committee of Creditors of CD. Thereafter, the matter was followed up with Mr. N. V. George, through emails on 15,02.2020 and 17.02.2020, but there was no response from him. 10. However, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered appearance, they did not file any counter to this IA. Findings: 14. I have heard the learned counsel for both sides and perused the orders passed by this Tribunal and the annexures produced with the petition. It is found that the Resolution Professional convened a meeting of CoC on 08.01.2021, where the committee with 100% voting ratified the action of filing liquidation of the Corporate under Section 33 (1) of the I B Code and IA (IBC)/18/2021 was filed and the same is pending before the Tribunal. In order to decide the issue involved in the present I.A, I would like to refer to Section 12 of Insolvency Bankruptcy Code, 2016. Section 12 prescribes the time limit for completion of Insolvency Resolution Process , which reads as follows: 12. Time-limit for completion of insolvency resolution process - (1) Subject to sub-section (2), the corporate insolvency resolution process shall be completed within a period of one hundred and eighty days from the date of admission of the application to initiate such process. (2) The resolution professional shall file an application to the Adjudicating Authority to extend the period of the corporate insolvency re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Professional to prove his net worth and interest in the matter. 17. The underlying object and principle of the Code, in resolving a debt ridden Corporate Debtor, cannot be lost sight of. The adherence to specific timeline for resolution is the essence, which in effect would bring about successful resolution of a beleaguered Company. It is found that the invitation for EoI was widely published in two newspapers namely Indian Express and Kerala Kaumudhi , the last date of submission of EoI was 08.02.2020. The ground that the potential Resolution Applicant due to lack of knowledge failed to submit EOI within time cannot be accepted. Besides no indulgence can be given to someone who hasn t been vigilant enough. The Potential Resolution Applicant has not shown sufficient cause for its delay in submitting its EoI. Mere stating by the applicant herein that it is on account of Covid-19 Pandemic would not be considered as sufficient reason to condone the delay. No reason is assigned as to how the pandemic affected the efforts of the potential Resolution Applicant in approaching the Resolution Professional in submitting the EoI. 18. Therefore, I am not persuaded by the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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