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TMI Blog2020 (1) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... he Adjudicating Authority (National Company Law Tribunal, New Delhi Bench - V) in IB 1612 (ND)/2019 whereby the Tribunal declined to extend the period of CIRP process beyond 330 days, although the RP was requesting just 15-20 days to complete the voting as two Resolution Plans had been received. 2. It is stated by the learned counsel for the Appellant that Corporate Insolvency Resolution Process (CIRP - in short) has been started against Benlon India Ltd. on 19th December, 2018. It is stated that the Resolution Professional made public announcement on 23rd December, 2018 and Committee of Creditors (COC - in short) was constituted on 12th January, 2019. The Counsel states that in spite of efforts made by the Interim Resolution Professional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e meantime, it will be open to the 'Committee of Creditors' to go through the 'Resolution Plans' and to consider the same in accordance with law. It may approve one or the other Plan but keep it in a sealed cover and not place it before the Adjudicating Authority." 6. It is stated that Notice has been served on the Respondent who was the Operational Creditor who initiated the CIRP but is absent. Learned Counsel states that when the Impugned Order was passed, there were two Resolution Applicants but now only Resolution Plan submitted by Mr. Surender Kumar Chawla is remaining to be considered. Learned Counsel submitted that the Appellant has attended the COC deliberations and it appears to the Appellant that there is bright h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.08.2018 are to be excluded, and we add these days to 01.05.2019 when the litigation process has come to an end, we still reach 04.05.2019. The Resolution plan in question is submitted only on 08.05.2019, and is therefore clearly beyond the mandatory period laid down in the Insolvency Code, 2016. The impugned order dated 01.05.2019 is set aside and the appeals are accordingly allowed." which show that the period can only be excluded/extended if they are incurred in any litigation process. Here, in case in hand, we find the resolution of the COC dated 8th November, 2019 which we have referred in the aforementioned paragraph shows that they have not resolved to authorize the RP to file an application for exclusion/extension of the CIRP on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present facts as in the present matter, the Resolution Plan was submitted before the period of 60 days which had been granted by the Adjudicating Authority vide Order dated 13th September, 2019 lapsed. It is argued that judgment in the matter of "State Bank of India" had its own facts and was passed on 09.08.2019; that second and third Proviso to Section 12 of IBC came into force w.e.f. 16.08.2019; and that judgment in the matter of "Essar Steel" is dated 15.11.2019 and of larger Bank which explains law. Counsel states that Adjudicating Authority erred in lightly not applying the judgment in the matter of Essar Steel (supra). The learned Counsel states that keeping in view an object of IBC which is resolution rather than liquidation, when i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity and/or Appellate Tribunal to extend time beyond 330 days. Likewise, even under the newly added proviso to Section 12, if by reason of all the aforesaid factors the grace period of 90 days from the date of commencement of the Amending Act of 2019 is exceeded, there again a discretion can be exercised by the Adjudicating Authority and/or Appellate Tribunal to further extend time keeping 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. Keeping in view the observations of the Hon& ..... X X X X Extracts X X X X X X X X Extracts X X X X
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