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TMI Blog2021 (5) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... Bankruptcy Code, 2016, read with Regulation 12(2) of the IBBI (CIRP) Regulations, 2016 and Rule 11 of NCLT Rules, 2016, with following directions:- a) To allow the present application and condone the delay (after considering the lockdown exclusion as per Regulation 40C of the CIRP Regulations, 2016) in filing the claim by the Applicant beyond the period of 90 days as prescribed under Regulation 12(2) of the IBBI (CIRP) Regulations, 2016; and b) Direct the Respondent i.e. the Resolution Professional to verify the claim and admit the claim of the Applicant and include Applicant's name in the list of operational creditors. 2. The facts of the case are stated herein: 2.1 CP (IB) 257 of 2019 was admitted on 19.12.2019 by this Adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for filing claims in the CIRP. 3.2 That the applicant has not been able to explain the delay in filing of the claim anywhere in the application. Moreover, the applicant has conveniently tried to take shelter and conjure up an excuse of the lockdown period on account of COVID-19. 3.3 That the ninetieth day from the insolvency process commencement date was 17.03.2020 and there is no dispute that the lockdown was imposed only on 25.03.2020. Even after the relaxed lockdown period from 01.06.2020, the applicant has only filed its claim on 15.09.2020. Thus, the assistance of Regulation 40C of the Regulations may not be applicable in the case of the applicant as timelines of the activity of submission of the claims at least within 90 days of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod, under such circumstances and also looking to the object of the IB Code which is to be completed in time bound manner, the application so filed is not maintainable. 5. Heard learned lawyer for the Applicant as well as the RP, also seen the record. It is a matter of record that the main petition, i.e. CP (IB) 257 of 2019, was admitted on 19.12.2019 and IRP was appointed, who invited claim(s) by making public announcement in Form-A and the last date for submission of claims were mentioned as 07.01.2020. However, the Applicant has submitted its claim only on 15.09.2020, much beyond the stipulated time as well as extended period of 90 days. It is to be mentioned herein that the lockdown period is from 25th March 2020 till 31st May 2020 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he IB Code, more so, when CIRP is to be completed in a time bound manner. If such claim is accepted, then the Resolution Applicants have to make corrections in their plans, that apart, RP has to make corrections in the IM and its report, correction in the stakeholders list, etc., for which RP has to take permission from this Adjudicating Authority, which may further delay the CIRP. Moreover, CIRP cannot be allowed/extended beyond upper limit of 330 days, in that event the corporate debtor would be compelled to go for liquidation. Further, if the Resolution Applicants have infused money or have taken financial assistance from other sources, in that event, they will have to approach for enhancement of the loan/infusion of money, which practic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s it will be a burden with other huge claims of the creditors, which they might have not planned earlier, while giving the resolution plan based on the IM. Thus, under such situation, the Corporate Debtor may be pushed for liquidation. 10. The Hon'ble NCLAT, in the matter of Binani Industries Limited vs. Bank of Baroda & Anr. held that "the objective of the I&B Code is Resolution. The purpose of resolution is for maximization of value of the assets of the 'Corporate Debtor' and thereby for all creditors. It is not maximization of value for 'stakeholders' or 'a set of stakeholders' such as creditors and to promote entrepreneur ship, availability of credit and balance the interests. The first order objective is &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided in Regulation 40A of the CIRP Regulations should be followed "as closely as possible". 12. Moreover, the RP acted in due compliance of the provisions of Clause (c) of the Sub Section (2) of the Section 15 of the Insolvency and Bankruptcy Code, 2016 read with Clause (c) of the Sub Regulation (2) of the Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 read with Sub Regulation (2) of the Regulation 12 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and also after taking into account the provisions of Regulation 40C of the Insolvency and Bankruptcy Board of India (Insolvency Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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