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TMI Blog2021 (11) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... ts made in the appeal that the Resolution Professional could not receive necessary cooperation from the erstwhile director of the Corporate Debtor, and consequently he had to file an application under Section 19(2) before the Adjudicating Authority, which was decided by the Adjudicating Authority. The resolution of CoC relating to filing of application for exclusion of the time period in the 5th meeting of CoC held on 29.8.2020 did not approve the request of the Resolution profession for filing of application for exclusion of time period, but left it to the wisdom of Resolution Professional. IBC provides that if the CIRP does not lead to satisfactory resolution of the Corporate Debtor in the timeline specified in section 12 of the IBC, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and justification for exclusion of the prayed time period in the CIRP - appeal dismissed. - Company Appeal (AT) (Ins) No. 825 of 2021 - - - Dated:- 29-10-2021 - (Justice M. Venugopal) Acting Chairperson , (V.P. Singh) Member (Technical) And (Dr. Alok Srivastava) Member (Technical) For the Appellant : Harish, Taneja , Advocate ORDER The appeal was heard on 20.10.2021. 2. This Appeal has been filed under section 61 of Insolvency and Bankruptcy Code, 2016 arising out of the order dated 29.07.2021 in IA 933/2021 in C.P. No. IB/1626(PB)/2019 passed by NCLT, New Delhi. 3. The Resolution Professional has stated that he had filed an application under Section 65 of The Insolvency and Bankruptcy Code, 2016 (hereinafter cal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noted by CoC. 6. The RP has added that the Hon ble NCLAT vide order dated 30.3.2020 had observed as follows:- That the period of lockdown ordered by the Central Government and the State Governments including thee period as may be extended either in whole or part of the country, where the registered office of the Corporate Debtor may be located, shall be excluded for the purpose of counting of the period for Resolution Process under Section 12 of the Insolvency and Bankruptcy Code, 2016, in all cases where Corporate Insolvency Resolution Process has been initiated and pending before any Bench of the National Company Law Tribunal or in Appeal before this Appellate Tribunal. It is further ordered that any interim order/sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the imposition of lock down in the on-going Covid-19 pandemic and hence the order of Adjudicating Authority granting an extension of 90 days w.e.f. 3.5.2020, so as to complete the CIRP in 70 days is not in accordance with his request for exclusion of time from the period from commencement of CIRP till the disposal of his application under Section 19(2) and therefore the Impugned Order should be set aside and exclusion time period as sought by him be granted by the Hon ble NCLAT. 9. We have perused order dated 29.7.2021 as well as the grounds stated by the Resolution Professional in the present appeal and the written submissions. 10. Regulation 40-C of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear from the averments made in the appeal that the Resolution Professional could not receive necessary cooperation from the erstwhile director of the Corporate Debtor, and consequently he had to file an application under Section 19(2) before the Adjudicating Authority, which was decided by the Adjudicating Authority. The resolution of CoC relating to filing of application for exclusion of the time period in the 5th meeting of CoC held on 29.8.2020 did not approve the request of the Resolution profession for filing of application for exclusion of time period, but left it to the wisdom of Resolution Professional. The CIRP is a time bound process and once the process is initiated, the clock starts ticking. It cannot be allowed to remain une ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for extension of CIRP as required under section 12, after a lapse of 180 days from the commencement of CIRP, after due approval of CoC. All this is requirement under Law, which cannot be lost sight of, and the Resolution Professional has been remiss in carrying out his responsibilities as per provisions of IBC. In such a situation, we find that he is seeking extension of time period of CIRP in the garb of exclusion of time period which cannot be permitted. 15. The Resolution Professional s Learned Counsel has cited the order of Hon ble NCLAT in CA(AT)(Ins) No. 331/2021 to claim that exclusion of time spent in judicial intervention was allowed to be excluded, along with time lost on imposition of Covid-19 lockdown and time spent in fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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