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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 ..... or an extension of time to receive an Expression of Interest (EoI) from a Prospective Resolution Applicant. When the MA was heard, this Tribunal verbally stated that an extension of time may be considered if a Prospective Resolution Applicant comes forth with a genuine Resolution Plan. Immediately thereafter Covid-19 Pandemic took its course and a nationwide lock down was announced on 24.03.2020. Due to the unforeseen circumstances, no Prospective Resolution Applicant came forward to submit a Resolution Plan. 3. In the meantime, the 1st Respondent / Resolution Professional filed MA 170/KOB/2020 seeking an extension of time to exclude lockdown period from the CIRP duration to complete all the procedures involved in the Corporate Insolvency Resolution Process. This Tribunal passed an Order dated 06.11.2020 in the above mentioned MA granting an extension of time for completion of the CIRP process on or before 30.11.2020. 4. The learned counsel for the applicants submitted that in the 8th meeting of the Committee of Creditors held on 23.11.2020, the Applicants were also participated. The e-mail sent by the 1st Applicant dated 20.11.2020 was discussed and it was informed to the Applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating Authority. It is pertinent to note that Section 12 clearly provides that an outer limit of 330 days can be prescribed as the period for completion of the CIRP and that benefit ought to be given in the case in hand for seeking out a Prospective Resolution Applicant. Reply by Resolution Professional: 8. The learned counsel appearing for the respondent- Resolution Professional submitted that as per the provisions of the I & B Code,2016 the suspended Board of Directors are not empowered to approach this Tribunal seeking extension of CIRP and that the Committee of Creditors have categorically decided against the extension of time for receiving a Resolution Plan from a Prospective Applicant. 9. The Resolution Professional stated that on being appointed him as Insolvency Resolution Professional (IRP) vide order dated 25.10.2019, a public announcement was made on 08.11.2019. The 2nd CoC meeting held on 19.12.2019, decided to appoint the IRP as Resolution Professional (RP). During the third meeting of Committee of Creditors of Corporate Debtor held on 23.01.2020, it was resolved to publish Form G calling for Expression of Interest (EoI) from Prospective Resolution Applicants a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as in the month of February, 2020, has neither submitted any credentials to prove his net worth and interest to continue with his request. 12. The learned Resolution Professional further stated that the suspended Board of Directors, attended the Committee of Creditors Meeting of CD held on 30.11.2020, where the letter and email of Shri. George Vinci Thomas, was discussed or proposed for resolution. It is further stated that the representative of the major Financial Creditor in the CoC having a voting share of 64.75% informed that their Bank is not in favour of giving any further extension of time. Only representative of Standard Chartered Bank suggested having a voting share of 17.80% for giving another 15 days' extension. None of the other members of the CoC expressed any views. In view of the above, request for extension of time by further 90 days was not recommended. It is further stated that the applicant cannot take refuge under Covid-19 pandemic especially since all the timelines for the Prospective Resolution Applicant expired prior to the Lockdown declared by the Government of India. 13. The CoC represented by the Central Bank of India, even though entered appearance, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation Limited -Company Appeal (AT) (Insolvency) No. 35 of 2018; wherein it is stated that: "If within 180 days including the last day i.e. 180th day, a resolution is passed 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." 16. In the present case, the subject matter of the case is regarding the extension of the CIRP period, when the CoC resolved for liquidation of the Corporate Debtor. It is seen that the resolution for further extension of time for submission of EoI has been rejected by the Committee of Creditors in the 3rd CoC meeting held 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 interes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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