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2020 (1) TMI 1337 - Tri - Companies LawExclusion of period of 60 days from the CIRP as per Section 12(3) 2nd proviso of Code - section 12(3) r/w section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- A bare perusal of Section 12 of the IBC, 2016 mandates that the CIRP period should be completed within the period of 330 days. Further, it has been clearly stated that the CIRP extension, beyond the stipulated period of 180 days, shall be granted only once, not exceeding 90 days. However, the IBC, Amendment Act, 2019 fails to address on how this Tribunal can treat the Applications which seek for CIRP extension beyond the period of 270 days to 330 days. In the facts of the present case, it is evident from the records that CIRP extension was already granted once for a period of 90 days from 23.10.2019 and thereby the 270 days period of CIRP came to an end on 21.01.2020. The second proviso to sub-section 3 of Section 12 of the IBC, 2016 states that the CIRP shall be mandatorily completed within a period of 330 days from the Insolvency commencement date, including any extension of the period of the CIRP granted under this section and the time taken in the legal proceedings - thus, it can be inferred from the second proviso to sub-section 3 of Section 12 of the IBC, 2016 that after granting extension once for a maximum period of 90 days, and upon 270 days of the CIRP coming to an end, this Tribunal has the power to exclude certain period from the CIRP proceedings provided the said exclusion period should not exceed the total CIRP period of 330 days. In other words, exclusion can be granted only for a period of 60 days after the expiry of 270 days. As to the facts of the present case, it can be seen, that if the 60 days are excluded from the CIRP period, the total period of the CIRP would be 330 days as mandated under Section 12 of the IBC, 2016. The Application stands allowed and the period of 60 days stands excluded from the CIRP timeline and as a result thereof, the Corporate Insolvency Resolution Process of the Corporate Debtor is directed to be completed on or before 20.03.2020 - Application allowed.
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