9911796707
TMI Blog2021 (3) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... the abovementioned notification, the IBBI has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 to include that Regulation 40C-the period of lockdown imposed in the wake of COVID-19 outbreak shall not be counted for the purposes of the timeline for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016. In the facts of the present case, it is evident from the records that CIRP of 180 days expired on March 8, 2020. Thus, it can be inferred from the second proviso to sub-section (3) of section 12 of the IBC, 2016 that one more extension of 90 day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ode and pass appropriate order under section 12(3) for extension of period ; and (c) Issue such other necessary orders as may be deemed fit in the matter. 2. It is averred in the application that the corporate insolvency resolution process (CIRP) was initiated against the corporate debtor vide order dated September 10, 2019. Thereafter, the IRP on analysis of the claims received has constituted the committee of creditors on October 3, 2019. In the meeting of the said CoC has been recommended to the applicant to continue as resolution professional and this Tribunal confirmed the appointment of the applicant herein to act as the RP by an order dated October 22, 2019. 3. It is further averred that on November 18, 2019 M/s. ASK I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e light of the directions of this Tribunal on January 3, 2020 the resolution professional was unable to publish form G or issue expression of interest at an early date. In the third meeting of CoC, the following resolution was passed with majority of the voting share : Resolved that corporate insolvency resolution process in the matter of M/s. Ambojini Property Developers P. Ltd. is hereby approved for extension by 90 days from the last date for completion of 180 days in accordance with the provisions of section 12(2) of the Insolvency and Bankruptcy Code, 2016. Resolved further that resolution professional Anil Kumar Khicha is to be and hereby authorized to file an application before the hon'ble National Company Law Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The above amendment shall come into force from March 29, 2020. 7. In the facts of the present case, it is evident from the records that CIRP of 180 days expired on March 8, 2020. Thus, it can be inferred from the second proviso to sub-section (3) of section 12 of the IBC, 2016 that one more extension of 90 days can be granted. 8. In this context, it is also relevant to refer the decision of the hon'ble Supreme Court in Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta [2020] 219 Comp Cas 97 (SC), in Civil Appeal Nos. 8766-67 of 2019 has observed in paragraph 79 as follows (page 197) : The effect of this declaration is that ordinarily the time taken in relation to the corporate insolvency resoluti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mit 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. Thus, taking into consideration, the decision of the hon'ble Supreme Court as rendered in Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta [2020] 219 Comp Cas 97 (SC) and the provision of law, the application stands allowed and the period of 90 days stands allowed from the CIRP timeline with an exclusion of time period arising of COVID-19 lockdown in consonance with the third amendment made to IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2020, dated March 29, 2020. The period from March 25, 2020 to October 31, 2020 is exclud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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