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TMI Blog2024 (8) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 01.07.2024 passed by National Company Law Tribunal, Chandigarh Bench (Court I) in IA No.1420 of 2024. IA No.1420 of 2024 was filed by the Appellant, which came to be rejected by the impugned order. Aggrieved by order dated 01.07.2024 rejecting the IA No.1420 of 2024, this Appeal has been filed. 2. We need to notice brief background facts and the sequence of the events for deciding the Appeal: (i) The account of the Corporate Debtor was declared a NPA on 09.11.2021 by the Financial Creditor - Bank of India. (ii) In Section 9 Application filed by one M/s Reem Tanners Pvt. Ltd., Corporate Insolvency Resolution Process ("CIRP") commenced against the Corporate Debtor vide order dated 12.05.2022. Respondent No.1 was appointed as an Interim Resolution Professional ("RP"), who was confirmed as RP on 01.09.2022. (iii) An OTS proposal was given by the Appellant to the Bank of India on 05.07.2022. In the CIRP Form-G was issued thrice. The Appellant on 22.09.2022 revised his OTS offer for an amount of Rs.55 crores. In the 7th meeting of Committee of Creditors ("CoC"), Resolution Professional opened three Resolution Plans received in the CIRP. On 10.06.2023, the CIRP period was ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order on 10.06.2023 granting extension of 20 days in the CIRP, i.e. upto 30.06.2023, which was with a rider that no further extension may be granted, the decision of the CoC taken on 27.07.2023, approving the Resolution Plan was beyond the CIRP period and could not have been taken note of by the Adjudicating Authority. Beyond CIRP period, no Resolution Plan can be approved. It is submitted that subsequent order passed on 18.10.2023 by the Adjudicating Authority, allowing the extension of 30 days, cannot be used to the benefit of anyone. No Resolution Plan can be approved when the CIRP period has come to an end. The CoC had no power to approve the Resolution Plan after expiry of CIRP period as it has become functus officio on 30.06.2023. The CoC while approving the Resolution Plan on 27.07.2023 could not have presumed that application for extension will be allowed without obtaining the order for extension, hence, the CoC could not have proceeded any further. 5. Shri Krishnendu Datta, learned Senior Counsel appearing for Respondent No.1 submits that CoC on 29.07.2023 has already resolved to seek extension of 30 days to enable it to complete the process. In pursuance of which applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the facts and circumstances mentioned in the application, this application is allowed. However, the extention of 30 days beyond 330 days period is granted from the date of this order by excluding the period of pendency of this application before this Authority. Resolution professional is directed to utilize the extended time effectively and efficiently to conclude the CIRP within the stipulated time. IA No. 1529/2023 is allowed and disposed of accordingly." 8. It is relevant to notice that RP has filed the Plan approval application being IA No.1734 of 2023, which was heard and decided on 01.07.2024, which is subsequent to the order dated 18.10.2023. 9. From the perusal of the order dated 18.10.2023, the Adjudicating Authority has while allowing the extension has excluded the period of pendency of the IA No.1529 of 2023, which remained pending from 30.06.2023 to 18.10.2023. When the period between 30.06.2023 till 18.10.2023 has been excluded and further extension was granted by 30 days, it cannot be said that approval of the Plan in the CoC meeting dated 27.07.2023 was beyond CIRP period. It would have been otherwise, if the Adjudicating Authority has rejected IA No.1529 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 20.06.2022 were not referred to in the Form H and when we read Form H along with the orders dated 11.01.2022 and 20.06.2022 passed by the Adjudicating Authority, granting exclusion of time till 13.08.2021, which is the date of which the Resolution Plan falls well within the CIRP period, hence the submission of the Appellant that Resolution Plan was approved by the CoC after expiry of the CIRP period cannot be accepted." 11. The above judgment fully supports the submission of the Respondent 12. It is further relevant to notice that the Appellant has filed IA No.1748 of 2023, immediately after CoC held its meeting dated 27.07.2023, which Application was filed on 29.07.2023, in which Application the Appellant has prayed for following reliefs: "1. Set aside 19th CoC proceedings dated 27.7.23 approving the resolution plan and / or applicant be also allowed to submit his Resolution Plan under the current CIRP process for consideration of CoC as applicant is suspended director of MSME-CD and condone delay in submitting the same due to pendency of OTS proposal of the applicant offering Rs.11 crore more than the Final Plan received; or 2. Direct the Respondent No. 1 to publish Fre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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