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TMI Blog2021 (8) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the said period from 08.05.2021 till 27.06.2021 can be excluded from the CIRP timelines. Further, the present Application was filed before this Tribunal on 25.05.2021 and till the date it was pending i.e. 30.07.2021 can be excluded from the CIRP timelines. Thus, a total of 83 days can be excluded from the CIRP timelines. If the said 83 days are excluded the CIRP in relation to the Corporate Debtor would come to an end on 22.08.2021. The CIRP in relation to the Corporate Debtor is extended only upto 22.08.2021 and the Applicant is required to finalize the accounts of the Corporate Debtor and also as per the order dated 26.02.2021 the Applicant may file an Application for liquidation after the expiry of the said period in terms of Section 33 of IBC, 2016 - Application allowed. - IA/510/CHE/2021 in CA/1/IB/2017 - - - Dated:- 3-8-2021 - SUCHARITHA R., MEMBER (J) AND ANIL KUMAR B., MEMBER (T) For the Appellant : N.P. Vijaykumar and R.V. Yajura Devi, Advocates ORDER SUCHARITHA R., MEMBER (J) 1. The above application has been preferred by the Resolution Professional under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is incidentally located being in the containment zone and the Central Government as well as State Government of Tamil Nadu have chosen to order that the lock down continues to be imposed on the respective containment zones like the City of Greater Chennai. In the circumstances, we deem it appropriate that lock down period should be excluded as sought for in the Application at least as of today. Further taking into consideration Section 12 (3) of IBC, 2016 and also keeping in mind the decision of the Hon'ble Supreme Court of India in the matter of Swiss Ribbons Pvt. Ltd. Anr. versus Union of India Ors. filed in Writ Petition (Civil) No. 99 of 2018, we extend the period of CIRP under the extraordinary circumstances prevalent in the country for a maximum period of 330 days i.e., by 150 days. No further extension shall be granted and the IRP of the Corporate Debtor is directed to expedite CIRP of the Corporate Debtor along with the CoC to arrive at a speedier resolution of the insolvency of the Corporate Debtor within the extended period granted by this Tribunal. 14. With the above directions, the Application in IA/515/IB/2020 stands allowed. 5. As per the above said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be achieved on or before 31.05.2021 failing which this Tribunal will be constrained to initiate liquidation process in relation to the Corporate Debtor. 7. In the interregnum there has been a change in the IRP and the CoC in its 11th Meeting held on 12.03.2021 has decided to appoint the Applicant herein as the Resolution Professional in relation to the Corporate Debtor. Thereafter, by an order of this Adjudicating Authority, the Applicant was appointed as the Resolution Professional in respect of the Corporate Debtor on 23.04.2021. 8. While this being the fact, the present Applicant has been moved by the Resolution Professional seeking thereof to grant further exclusion of 165 days and to extend the CIRP by a period of 15 days. 9. It is averred in the Application that the CoC met through video conferencing and took note and deliberated on various information presented to the CoC and while discussing it was seen that the CoC has deliberated upon the only Resolution Plan which was rejected by the CoC members holding 100% of the voting share. Further, it was also submitted by the Learned Counsel for the Applicant that various compliances as mandated under the Companies A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Hon'ble Supreme Court in the matter of Committee of Creditors of Essar Steel India Limited through Authorized Signatory Vs Sathish Kumar Gupta Others filed in Civil Appeal No. 8766-67 of 2019 dated 15.11.2019, in order state that under exceptional cases, the time can be extended by the Adjudicating Authority by exercising its discretion for a period beyond 330 days. Further, reliance was also placed upon the decision of the Hon'ble NCLAT in the matter of Vivek Raheja, Resolution Professional, in CA(AT)(Ins) No. 331 of 2021, wherein it was held that the lockdown period on account of Covid - 19 pandemic is an exceptional circumstance and allowed for extension of CIRP beyond 330 days. 16. After hearing the arguments made by the Learned Counsel for the Resolution Professional, it is seen that extension of CIRP in relation to the Corporate Debtor is not only granted once, but twice in the present matter. Further in the last extension order dated 26.02.2021, this Tribunal has categorically stated in its last para as follows; Let the insolvency resolution of the Corporate Debtor be achieved on or before the said dated of 31.05.2021 failing which this Tribunal wll be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to prevent an aberration of justice. (emphasis supplied) 18. The Hon'ble NCLAT has categorically held that the time taken pertaining to the Corporate Insolvency Resolution Process of the 'Corporate Debtor' must be completed within a period of 330 days from the date of commencement of Insolvency (including the extension and time consumed in legal proceedings). In the present case, the CIRP in respect of the Corporate Debtor has exceeded a period of more than 600 days. Also, as per the Judgment of the Hon'ble Supreme Court in the matter of Essar Steel (supra), the 330 days period of CIRP can be extended only under exceptional circumstances, for instance for the reasons like, only for the sake of approval of a Resolution Plan. However, in the present case, no such exceptional circumstance is seen in relation to the Corporate Debtor. Further, a perusal of the minutes of the 12th CoC would posit the fact that the CoC wishes to go ahead with a fresh issue of the Eol at this stage, which is not permitted under the provisions of IBC, 2016 especially when the CIRP in relation to the Corporate Debtor has already exceeded 330 days. 19. As to the facts of the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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