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TMI Blog2021 (6) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... the period of corporate insolvency resolution process granted under this section and the time taken in legal proceedings in relation to such resolution process of the corporate debtor . Petition disposed off. - (IB) 1048(ND)/2019 and IA/891/2021 - - - Dated:- 17-3-2021 - Abni Ranjan Kumar Sinha, Member (J) And L.N. Gupta, (T) For Appearing Parties : K.D. Sharma, Adv. and Vivek Raheja ORDER Abni Ranjan Kumar Sinha, Member (J) 1. The present application is being preferred on behalf of Committee of Creditors under section 60(5) of the Insolvency Bankruptcy Code, 2016, (hereinafter referred to as the Code ) read with Rule 11 of the National Company Law Tribunal Rules, 2016 seeking exclusion of certain time periods from the total time period of 330 days as contemplated by Section 12 of the Insolvency and Bankruptcy Code, 2016. The prayers of the applicant is quoted below:- (a)............... (b) The Adjudicating Authority may be pleased to allow the exclusion of One Hundred Twenty Three (123) days from the total time period of 330 days as mandated by Section 12 of the Code on the account of time taken to decide IA 4208 of 2020 whereby the resolutio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ality or infirmity in the Order passed by the Adjudicating Authority and hence this Appeal fails and is dismissed accordingly. No Order as to costs v. That during second meeting of the Committee of Creditors (for brevity, CoC ) of the Corporate Debtor (held on 09th June 2020), Andhra Bank (now merged with the Union Bank of India) in its capacity as a Financial Creditor, having 86.89% voting rights, moved a motion that the Bank intends to replace the resolution professional Mr. Sumit Bansal with Mr. Vivek Raheja, the bank empanelled resolution professional, having IBBI registration No. IBBI/IPA-001/IP00055/2017-2018/10133. The Bank further added that it could not propose the same earlier due to lockdown. However, CoC members, in view of the Hon'ble Apex Court Order dated 04th June 2020, decided to maintain the status quo in the matter till the appeal [Company Appeal (AT) (INS.) No. 379 of 2020] before the Hon'ble NCLAT is decided. vi. That during the third meeting of CoC (held on 26th August 2020), voting was done on Agenda No. 4: Replacement of the extant resolution professional with Mr. Vivek Raheja -resolution professional empanelled with the Bank. vii. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imum period of 330 days: a) Period under lockdown; and b) Period taken in disposal of IA 4208/2020 for replacement of the resolution professional. The said email was replied by the ICICI Bank (CoC member) vide reply-email dated 07th February 2021 (1:48 PM) with a copy marked to the Union Bank of India and Axis Bank (members of CoC). Similarly, vide email dated 09th February 2021 (6:40 PM), the suspended board of directors were apprised of the assumption of the office of the resolution professional in the CIRP of Corporate Debtor by the replacer-resolution professional. xiv. Form G inviting expression of interest (EOI) was published on 05th October 2020. However, CoC had directed the resolution professional to put the process of EOI on hold till they get approval for fixing eligibility criteria. Form G was republished on 21st January 2021 (with last date of receipt of EOI being 07th February 2021). Pursuant to the last publication, three investors namely Mr. Alok Kumar Agarwal for ASC Consulting Private Limited [vide letter dated 30th January 2021], Mr. Saurabh Jain for Sharu Industries Private Limited [vide email dated 07th February 2021 (7:38 PM)] and Mr. K.R. Choud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fee. e. Publication of Form G approval of eligibility criteria. f. Exclusion/extension of CIRP. g. Other expenses like e-voting expenses, stationery, etc. xx. That by placing reliance on the Order dt. 23.03.2020 of the Hon'ble Supreme Court of India in Suo Motu Writ Petition (Civil) No. 03 of 2020 and order dt. 30.03.2020 of the Hon'ble Appellate Tribunal in Suo Motu Company Appeal (AT)(Insolvency) No. 01 of 2020, and by taking into its August consideration the mandate of Regulation 40C of the IBBI Regulations, the replacer-resolution professional has requested this Adjudicating Authority to exclude the period of One-Sixty (160) days [as calculated from 25th March 2020 till 31st August 2020] from the maximum period of 330 days as mandated by Section 12 of the Code. xxi. That it is further submitted by the Applicant that the Adjudicating Authority, in addition to the Orders/Judgment/Regulation stated above, may take into its consideration, the following Order delivered by the Principal Bench of the Adjudicating Authority on 09th December 2020 in I.A 5320/2020 in IB 263(PB)/2018 - State Bank of India v. M/s. Century Communication Ltd. Ors.: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, New Delhi, Principal Bench in IB-263(PB)/2018 f. Regulation 40C of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations 2016 4. We have heard the Ld. Counsel for the applicant and perused the averments made in the application. 5. Ld. Counsel for the applicant submitted that due to lockdown imposed by the Central Government as well as State Government, no work was done/conducted by the RP. Therefore, the period commencing from 25.03.2020 till 31.08.2020 may be excluded on the ground of lockdown imposed by the Central Government as well as State Government concerned. 6. He further submitted that the applicant has filed an application for replacement of Resolution Professional (hereinafter referred as RP ) which was registered as IA/4208/2020 but could not be taken up for hearing and remained pending for the period of 27.09.2020 till 27.01.2021. So, this period i.e. 123 days may also be excluded while calculating the period of Corporate Insolvency Resolution Process (hereinafter referred as CIRP ) on the ground of pendency of application for replacement of RP. 7. He further submitted that the Principal B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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