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2021 (6) TMI 122 - Tri - Insolvency and BankruptcySeeking exclusion of the period w.e.f. 01.08.2020 to 31.10.2020 from the calculation of the total period of the CIRP - HELD THAT - Hon'ble National Company Law Appellate Tribunal in IN RE SUO MOTO 2 020 (6) TMI 495 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI has held that the period of lockdown ordered by the Central Government and the State Governments including the period as may be extended either in whole or part of the country, where the registered office of the Corporate Debtor may be located, shall be excluded for the purpose of counting of the period for 'Resolution Process under Section 12 of the Insolvency and Bankruptcy Code, 2016, in all cases where 'Corporate Insolvency Resolution Process' has been initiated and pending before any Bench of the National Company Law Tribunal or in Appeal before this Appellate Tribunal. 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 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. Application is allowed to the limited extent to exclude the period w.e.f. 01.08.2020 to 31.10.2020 from the CIRP period.
Issues:
1. Exclusion of time period in Corporate Insolvency Resolution Process (CIRP) due to Covid-19 lockdown. Analysis: 1. The Tribunal heard the Resolution Professional's application seeking exclusion of the period from 01.08.2020 to 31.10.2020 from the calculation of the total CIRP period for M/s. Kopargaon Ahmednagar Tollways (Phase-I) Private Limited. The application was based on the impact of the Covid-19 lockdown on completing the CIRP process initiated on 07.10.2019. 2. Referring to the observations of the Hon'ble Supreme Court of India and the National Company Law Appellate Tribunal regarding the extension of limitation due to Covid-19, the Tribunal considered the unprecedented situation arising from the pandemic. The Tribunal noted the challenges faced by stakeholders and the legal fraternity in adhering to prescribed timelines under the Insolvency and Bankruptcy Code, 2016. 3. The Tribunal highlighted the orders issued by the Hon'ble Supreme Court of India, National Company Law Appellate Tribunal, and the Insolvency and Bankruptcy Board of India, which provided for the exclusion of the lockdown period from the computation of timelines for various processes related to insolvency resolution and liquidation. 4. Considering the legal provisions, regulations, and orders in place due to the Covid-19 situation, the Tribunal allowed the application to exclude the period from 01.08.2020 to 31.10.2020 from the CIRP period of M/s. Kopargaon Ahmednagar Tollways (Phase-I) Private Limited. The decision was made in the interest of justice and in alignment with the regulatory framework established to address the challenges posed by the pandemic. 5. Another application, CA No. 965/2019, was listed for hearing on 26.04.2021, where no representation was made for the applicant. The Tribunal scheduled further proceedings for the said application, indicating the continuation of legal processes despite the disruptions caused by the pandemic.
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