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TMI Blog2023 (7) TMI 1396X X X X Extracts X X X X X X X X Extracts X X X X ..... al is filed by the Promoter and erstwhile Director of Dharani Sugars & Chemicals Limited, assailing the order dated 27.06.2023, passed by the Adjudicating Authority (National Company Law Tribunal, Special Bench - 1, Chennai) by which the applications i.e. I.A.(IBC)/380/CHE/2023, I.A.(IBC)/490/CHE/2023 and INV. P/5(CHE)/2023 filed in IBA/976/2019 by the RP seeking extension of CIRP beyond the period of 330 days has been dismissed and allowed I.A.(IBC)/1023/CHE/2023 filed by the Resolution Professional for liquidation of the Corporate Debtor. 2. Shorn of unnecessary details, the CIRP proceedings in respect of Dharani Sugars and Chemicals Limited (Corporate Debtor) was initiated on 29.07.2021 and S. Rajendran was appointed as the Interim Reso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to file 'Status Report' before the 'Office of the Registry' (not only through e-filing but also through Hardcopy) and the copy of the same shall be served to the other side without fail. Till the next date of Hearing, the meeting of 'Committee of Creditors' slated today i.e. 27.08.2021 at 3.30 p.m. shall stands deferred. The 'Office of the Registry' is directed to List the matter on 14.09.2021." 3. Thereafter, on 18.04.2022 the NCLAT passed the following order which is reproduced as under:- "At request of Mr. T.K. Bhaskar, the Learned Counsel for the Appellant coming out with the reason that due to the 'intervening holidays' during the last week, the Appellant was not in a position to mobilize 'Money' and hence prays for a week's ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the CoC meeting held on 18.05.2023 that the resolution plans did not get the requisite votes neither it has been found that there has been any resolution plan pending nor any application under Section 12A for consideration before the Adjudicating Authority. 7. The Adjudicating Authority, after taking into consideration the entire facts and circumstances as well as referring to the decision of the Hon'ble Supreme Court in the case of Essar Steels Through Authorized Signatory Vs. Sathish Kumar Gupta & Ors. (2020) 8 SCC 531 and a decision of the NCLAT in the case of Vivek Raheja, RP in CA (AT) (Ins) No. 331 of 2021 held that the CIRP of the CD must be completed within a period of 330 days from the date of commencement of Insolvency (incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebtor were rejected with the majority of the vote of 91.92% by the CoC and at that time the CoC was aware that 330 days time period in respect of the Corporate Debtor had already been over. Moreover, it has been categorically observed by the Adjudicating Authority that neither any plan was pending nor any application under Section 12A of the Code was pending for their consideration, therefore, the period of CIRP cannot be extended on the flimsy grounds much beyond the period of 330 days as has been held by the Hon'ble Supreme Court in the case of Essar Steels Through Authorised Signatory (Supra). Therefore, the applications filed for extension of time by the RP has rightly been dismissed and the application filed by the RP for an order of l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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