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TMI Blog2018 (9) TMI 2103X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be beyond the competence of IBBI as the source of power to frame Regulation under the IBC is drawn from Section 240 of IBC, 2016. Section 240(1) in categorical terms provides that the IBBI may by notification make regulation consistent with the Insolvency and Bankruptcy Code, and further subject to the Rules framed by the Government under Section 239 of IBC, 2016 for carrying out the provisions of the Code. In the present case on 04.06.2018 expression of interest was invited and last date for expressing interest to submit the resolution plan was 18.06.2018 without in fact inviting any resolution plan. Such a course is negation of the salient features highlighted by Supreme Court that the speed is essence of the IBC, 2016, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in certain cases as explained in Item No. 1) and signing of confidentiality undertaking. As discussed during the 3 4 CoC meeting and mentioned in the Request for Resolution Plan (RFRP) document, the last date for submission of resolution plans by the prospective resolution applicants was specified as 10% August, 2018. He further informed that post receiving the dataroom access, the two to three potential resolution applicants have requested to extend the last date of submission of resolution plan by 15 days to 4 weeks as their advisors need more time to conduct a meaningful diligence and offer right value to the assets. Additionally, the recent transporters strike hampered the supplies of key raw materials for few days to the plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for extension of the Corporate Insolvency Resolution Process not exceeding 90 days. It is appropriate to mention that the Corporate Insolvency Resolution Process in this matter was initiated on 05.04.2018 and the period of 180 days came to an end on 02.10.2018. It has been brought to our notice on 04.06.2018 expression of interest were floated inviting the interest in the assets of corporate debtor. The last date fixed for intimating expression of interest was 18.06.2018. Presumably, no resolution plan was invited by the aforesaid expression of interest. We have spoken about such a course being illegal in a detailed judgment rendered in the case of Punjab National Bank V. Bhushan Power Steel Limited while deciding CA No. 152(PB) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Supreme Court in paras 16 17 in the case of B. Ramakichenin @ Balagandhi Vs. Union of India and Ors., (2008) 1 SCC 362 which read as under:- 16. Even if there is no rule providing for short-listing nor any mention of it in the advertisement calling for applications for the post, the Selection Body can resort to a short-listing procedure if there are a large number of eligible candidates who apply and it is not possible for the authority to interview all of them. For example, if for one or two posts there are more than 1000 applications received from eligible candidates, it may not be possible to interview all of them. In this situation, the procedure of short- listing can be resorted to by the Selection Body, even though ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed and applied by a Division Bench of Bombay High Court in the case of Flemingo Duty-Free Shop Pvt. Ltd. and Mr. Vivek S. Bhatt v. Union of India and Ors., 2008 (4) ALLMR 663. In the present case only seven applicants have come forward. As a matter of fact, no expression of interest was warranted and the vital time spend in this process could have been saved. 72. We are further of the view that the object of the Insolvency and Bankruptcy Code is to reorganize and evolve insolvency resolution of, inter alia, Corporate persons in a time bound manner for maximization of the value of assets of such person. The aforesaid statement of object is evident from para 2 of the long title of the Code which reads as under:- The objective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make regulation consistent with the Insolvency and Bankruptcy Code, and further subject to the Rules framed by the Government under Section 239 of IBC, 2016 for carrying out the provisions of the Code. It has been repeatedly emphasised culminating in the rendered in aforesaid judgment that speed is the essence of CIR Process and inviting expression of interest would impede to the speed. In the case of Innoventive Industries Ltd. v. ICICI Bank Ltd. (2018) 1 SCC 407 passed by Hon ble Supreme Court has highlighted that the speed is one of the salient features of the IBC, 2016. By use of the words expression of interest the speed is retarted and time is wasted. In the present case on 04.06.2018 expression of interest was invited and last ..... X X X X Extracts X X X X X X X X Extracts X X X X
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