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2020 (12) TMI 641 - Tri - Insolvency and BankruptcySeeking for exclusion of period of lockdown w.e.f. 25.03.2020 to 30.06.2020 from the liquidation process period - Section 60(5) read with Regulation 47-A of the IBBI (Liquidation Process) Regulations, 2016 and read with Rule 11 of NCLT Rules, 2016 - HELD THAT - The Insolvency and Bankruptcy Board of India, inserted Regulation 40C to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, vide notification dated 29.03.2020 held that Notwithstanding the time-lines contained in these regulations, but subject to the provisions in the Code, the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process. Similarly, the Insolvency and Bankruptcy Board of India, vide notification dated 20.04.2020, inserted Regulation 47 A to the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and the said regulation held that Subject to the provisions of the Code, the period of lockdown imposed by the Central Government in the wake of Covid-19 outbreak shall not be counted for the purpose of computation of the timeline for any task that could not be completed due to such lockdown, in relation to any liquidation process. In view of the Regulations issued by Insolvency and Bankruptcy Board of India, application is allowed.
Issues:
- Urgent hearing sought for IA No. 329/2020 - Exclusion of lockdown period from liquidation process period Issue 1: Urgent hearing sought for IA No. 329/2020 The applicant filed IA No. 328/2020 seeking an urgent hearing for IA No. 329/2020. The Tribunal allowed IA No. 328/2020, leading to the consideration of IA No. 329/2020 for hearing. Consequently, CA No. 328/2020 was disposed of. Issue 2: Exclusion of lockdown period from liquidation process period The Liquidator of M/s. Dunn Foods Pvt. Ltd. filed IA No. 329/2020 under relevant regulations seeking the exclusion of the lockdown period from the liquidation process timeframe. The liquidation process period, originally set to expire on 05.02.2020, was extended by six months. However, due to the nationwide lockdown from 25.03.2020 to 30.06.2020, the liquidation process could not be completed. The applicant cited the orders of the Hon'ble Supreme Court of India, National Company Law Appellate Tribunal, and regulations issued by the Insolvency and Bankruptcy Board of India in support of the request for exclusion of the lockdown period. The Tribunal, considering the circumstances and legal provisions, allowed IA No. 329/2020, thereby excluding the lockdown period from the liquidation process timeframe. In conclusion, the Tribunal granted the applicant's request for the exclusion of the lockdown period from the liquidation process timeframe, as supported by relevant legal provisions and orders. The judgment highlighted the impact of the COVID-19 pandemic on legal proceedings and the measures taken by various authorities to address the challenges faced by stakeholders in meeting statutory timelines during the lockdown period.
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