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TMI Blog2024 (2) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... ented by Ld. Counsel Ms Gayathri Mohite, RP Ms Kiran Martin Golla is also present through video conferencing mode. This Application has been filed seeking extension of timeline for completing the CIRP of the Corporate Debtor by a further period of 90 days in accordance with Section 12(2) of the IBC, 2016 r/w Regulation 40 of the IBBI, Regulations, 2016. It is stated that on 21.04.2023, the sole CoC member passed the resolution to extend further period of 90 days from the last date of CIRP dated 10.05.2023. The resolution is placed at page 73. Voting is placed at page 78 and 79 of the Application. In view of the above Application is allowed and CIRP is extended for further period of 90 days with effect from 10.05.2023." and disposed of the IA(IBC)/1235(CHE)/2023 accordingly. 3. Assailing the correctness, validity, propriety and legality of the impugned order dated 27.07.2023 in IA (IBC)/1235(CHE)/2023 in CP (IB)/9(CHE)/2022 passed by the Adjudicating Authority/NCLT, Spl Bench (Court I), Chennai, the Learned counsel for the Appellant/Petitioner submits that the Appellant is a Resolution Professional appointed in 'Corporate Insolvency Resolution Process' of Vardharaja Foods Pvt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on hand, the Resolution Professional had no actual or constructive knowledge of the impugned order and in fact on the date of order 27.07.2023 the Adjudicating Authority/Tribunal merely pronounced that 'CIRP' extension Application was being allowed, without more and this is corroborated by the reporting Email received by the Resolution Professional/appellant on 27.07.2023 which merely mentions that 'the application was allowed.' 9. The Learned counsel for the Appellant takes an emphatic plea that the Extension of CIRP application, filed by the Petitioner/Appellant had specifically sought a relief of extension from the date of disposal and to exclude the period of pendency and in reality, where the Resolution Professional was informed that the IA (IBC)/1235(CHE)/2023 in CP (IB)/9(CHE)/2022 was allowed. Further, the Resolution Professional, 'Bona fide' and reasonably was under the notion/belief that all the reliefs were allowed in accordance with the Hon'ble Supreme Court Decision. 10. It is the stand of the Appellant that the Resolution Professional had no actual or constructive knowledge of the 'Retrospective Calculation', on 27.07.2023, until the order was uploaded on 11.08.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, if it can be shown to the Adjudicating Authority and/or Appellate Tribunal under the Code that only a short period is left for completion of the insolvency resolution process beyond 330 days, and that it would be in the interest of all stakeholders 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itation of Expression of Interest 29.04.2023 Last date for receipt of Expression of Interest 14.05.2023 Date of issue of provisional list of prospective resolution applicants 24.05.2023 Last date for submission of objections in provisional list 29.05.2023 Date of issue of final list of prospective resolution applicants 08.06.2023 Date of issue of information memorandum, evaluation matrix and request for resolution plans to prospective resolution applicants 29.05.2023 Last date for submission of resolution plan by the Resolution Applicants 30.06.2023 19. According to the Learned Counsel for the Appellant/Petitioner, in terms of the timeline specified Supra, the last for submission of Resolution Plan by the Resolution Applicant stood on 30.06.2023. Also an Expression of Interest from a few of the prospective Resolution Applicants was received. 20. According to the Appellant/Petitioner, the initial period of 180 days had lapsed on 10.05.2023 and further that the Members of the Committee of Creditors and Resolution Professional shall be left with no time, to proceed with any of the procedure mentioned in the said 'Form G' including to evaluate the Resolution Plan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out or elongating the ambit of something, the additional period of time given to a person, to meet one end. However, the term exclusion is an example of leaving something or keeping out, eliminate, facing out, rule out etc. In fact, the exclusion of particular period by an Adjudicating Authority / Tribunal using its discretionary powers under Rule 11 of NCLT Rules, 2016 and relying upon the Regulation 40C of the Regulations to keep the Company a 'Going Concern' was held to be a proper, although it was dissented by 42% of the Committee of Creditors Members as per decision in India Bulls Housing Finance Ltd. V. Sandeep Chandna (reported in 2022) 141 Taxmann.com.552 NCLAT, New Delhi. 27. When an extension for 90 days to complete the CIRP is granted by an Adjudicating Authority then such period will be counted from the date on which the Adjudicating Authority/Tribunal passed the order for such extension. 28. On a careful meticulous consideration of contentions advanced on behalf of the Appellant/Petitioner, this Tribunal taking note of the fact that the sole COC Member has passed a Resolution to extend further period of 90 days from the last date of CIRP dated 10.05.2023, in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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