9911796707
TMI Blog2021 (6) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... ity's order dated August 25, 2020. In view of the amendments brought in section 12 of the IBC, 2016 with effect from August 16, 2019 the CIRP shall be mandatorily completed within a period of 330 days from the insolvency commencement date including any extension of the period of the CIRP granted under section 12 of the IBC, 2016. Since, the CIRP period of 180 days has already been extended by another 90 days vide this Adjudicating Authority's order dated August 25, 2020 and the period of 270 days came to end on November 10, 2020 we hereby allow to complete the corporate insolvency resolution process within another 60 days with effect from the date of this order - The applicant is hereby directed to take all necessary steps to com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t date of hearing. 2. The brief facts of the case, inter alia, are as under : (i) That the State Bank of India has filed an application under section 7 of the IB Code, 2016, for initiation of the CIRP against the corporate debtor. This Adjudicating Authority vide its order dated November 7, 2019 admitted the CIRP against the corporate debtor and appointed Mr. Ravi Sankar Devarakonda as interim resolution professional (IRP). Later he was confirmed as resolution professional in the first CoC meeting held on December 5, 2019. (ii) That the applicant/RP has approached this Adjudicating Authority seeking an extension of the CIRP period by 90 days, as provided under section 12(2) of the Code owing to the following reasons : (a) Consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining the necessary approvals from CEA/Ministry of Power. The imposition of the lockdown slowed down the process further impacting the timelines under the CIRP. (e) Owing to the grave financial strain on the corporate debtor and shortage of funds to meet employee and operational costs the applicant was constrained to explore the option of interim finance and evaluate the various proposals submitted in this regard during the period of lockdown which was therefore more cumbersome and time consuming. (f) The corporate debtor has 14 prospective resolution applicants who are seriously looking to provide a resolution plan for the corporate debtor. However, the outbreak of the COVID-19 pandemic and the lock down imposed in India pursuant the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approval of this Adjudicating Authority for seeking the benefit of regulation 40C of the CIRP Regulations for the period from July 1, 2020 to August 31, 2020 (62 days) in computing the CIRP period of 330 days. (v) That the CoC has vide its majority resolution passed in its 11th CoC meeting authorised and instructed the applicant as the resolution professional to file an application before this Adjudicating Authority for extension of CIRP beyond 270 days to 330 days including the exclusion of the period of 62 days lost on account of the lockdown in Telangana. (vi) That CoC in its 11th meeting dated October 22, 2020 has approved the following resolution for seeking extension of 60 days with a majority of 100 per cent. of voting shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solvency commencement date including any extension of the period of the CIRP granted under section 12 of the IBC, 2016. Since, the CIRP period of 180 days has already been extended by another 90 days vide this Adjudicating Authority's order dated August 25, 2020 and the period of 270 days came to end on November 10, 2020 we hereby allow to complete the corporate insolvency resolution process within another 60 days with effect from the date of this order. The applicant is hereby directed to take all necessary steps to complete the CIRP within the mandatory period of 330 days, failing which the liquidation proceeding will commence. 8. The permission is granted on having considered the steps already been taken by the RP and the current ..... X X X X Extracts X X X X X X X X Extracts X X X X
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