9911796707
TMI Blog2022 (1) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... rsekar, Advocates for R-2 JUDGMENT ASHOK BHUSHAN, J. These three Appeals have been filed against same judgment dated 29.09.2021 passed by the National Company Law Tribunal, Mumbai Bench, rejecting the I.A. No.2118 of 2021 filed by the Resolution Professional seeking extension of Corporate Insolvency Resolution Process (CIRP). 2. The Appellant in Company Appeal (AT) (Insolvency) No. 896 of 2021 is an Association formed by the Homebuyers of the flats proposed to be constructed and delivered by the Corporate Debtor of a Project titled "Whispering Towers" located at Village Nahur, Taluka Kurla. In the aforesaid project almost 1500 flats were to be constructed. 3. In Company Appeal (AT) (Insolvency) No. 980 of 2021, there are two Appellants. Appellant No.1 - Majestic Towers Flat Owners Association is an Association of 290 allottees, who purchased flats in the project known as "Majestic Towers" at Bandra, Mumbai. Appellant No.2-Galaxy Apartment is an Association of Homebuyers comprising 96 allottees of 'F Wing' of the Project - "Galaxy Apartments" situated at Kurla, Mumbai. 4. Company Appeal (AT) (Insolvency) No. 1045 of 2021 has been filed by the Appellant, Ex-Promoter/ Director o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Professional filed an I.A. No.2118 of 2021 wherein, after narrating the sequence of event, prayed for extension of CIRP period. In the Application, it was mentioned by the Resolution Professional that the CIRP period was to come to an end till 15th September, 2021 and was extendable till 30th September, 2021. The details of eight Projects were also mentioned in the Application for which Project wise Resolution was sought for. After the CoC's decision dated 8th September, 2021, Resolution Professional invited Expression of Interest for rehabilitation of the Corporate Debtor Project Wise. In response to which 25 Expression of Interests were received by the Resolution Professional. 8. The Application filed by Resolution Professional, came for consideration before the Adjudicating Authority and Adjudicating Authority noticed that Committee of Creditors has decided on 8th September, 2021 to go for Project Wise Resolution, but observation of the Adjudicating Authority was that it was because of the pressure from the Homebuyers that CoC agreed to explore the possibility of Resolution Plan of the Corporate Debtor by dividing the total assets into eight Projects. The Adjudicating Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss. 12. We have considered the submissions of learned Counsel for the parties and have perused the record. 13. The first two Appeals have been filed by the Homebuyers Association of Project Whispering Towers Flat Owners Welfare Association and Majestic Towers Flat Owners Association with Galaxy Apartment F Wing Welfare Association, who are allottees of different flats in the above two Projects namely Whispering Towers and Majestic Towers, Projects of the Corporate Debtor. Homebuyers as a class of voters have about 10% voting shares in the Committee of Creditors. 14. The object of the IB Code is the resolution of the insolvency of a Corporate Debtor. Efforts of all stakeholders has to be towards resolution of insolvency. There can be no dispute that the law mandates that CIRP proceedings have to be concluded within 330 days. Hon'ble Supreme Court, after noticing the above requirement of 330 days in Section 12, laid down in (2020) 8 SCC 531 - Committee of Creditors of Essar Steel India Ltd. vs. Satish Kumar Gupta and Ors. that normally as per law, insolvency resolution process has to be completed within 330 days maximum, but in exceptional cases, the period can be extended by Adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holders that the corporate debtor be put back on its feet instead of being sent into liquidation and that the time taken in legal proceedings is largely due to factors owing to which the fault cannot be ascribed to the litigants before the Adjudicating Authority and/or Appellate Tribunal, the delay or a large part thereof being attributable to the tardy process of the Adjudicating Authority and/or the Appellate Tribunal itself, it may be open in such cases for the Adjudicating Authority 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." 15. The H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he numbers of Project9s0, if required, based on the viability/ security interest in specific asset/ group of assets. The Chairperson further stated that re-run of CIRP and project wise resolution will be subject to grant of further time by Hon'ble NCLT for which the necessary Application will be filed by the RP. Timeline for re-run of CIRP was also displayed at the meeting. On a query regarding powers of Hon'ble NCLT for extension beyond timeline prescribed under Section 12 of the Code, the Legal Advisor stated that the Hon'ble NCLT has inherent powers under Rule 11 of NCLT Rules to grant or pass orders on any matter not expressly covered under any Section of Code as may be required, depending on the facts and circumstances of each case. Based on the views of the CoC members, it was decided to consider re-run of the CIRP and explore possibility of project wise resolution and put the same for e voting. The Chairperson further stated that liquidation of the CD as proposed earlier will not be put up for e voting. The Members of the CoC took note of the same and the Chairperson informed that re-run of CIRP and possibility of project wise resolution would be put up for e-voting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reme Court time and again reminded that the object of IBC is to resolve the insolvency resolution process and liquidation is to be adopted as a last resort. 21. The learned Counsel for the Appellant has also relied on the judgment of this Tribunal in Company Appeal (AT) (Insolvency) No. 926 of 2019 (supra) wherein this Tribunal has also observed that Corporate Insolvency Resolution Process against real estate Company is limited to project as per approved Plan. 22. We in the facts of the present case are of the view that Adjudicating Authority ought to have given reasonable extension of period for proceeding further with Resolution Project Wise for which 25 Expression of Interests have already been received with the Resolution Professional. 23. In view of the above discussion, we allow the Appeal and set aside the order of the Adjudicating Authority dated 29.09.2021, allow the Application being I.A. No.2118 of 2021 in C.P.(IB)-27(MB)/2019 filed before the Adjudicating Authority and grant extension of 90 days from the date of this order during which period the Resolution Professional and the Committee of Creditors may complete the Project Wise Resolution as decided in their meetin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
