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2018 (12) TMI 1854 - Tri - Companies LawBelated submission of Resolution Plan - Illegality of the decision of the CoC, refusing to open the envelop of the Resolution Plan sent by the Applicant and to return the same to the Applicant without considering the resolution plan on its merits - Direction to CoC to consider the resolution plan submitted by the Applicant on its merits as Applicant believes that its plan will maximize the asset value of the Corporate Debtor - whether the Resolution Plan of the Applicant can be considered at this belated hour or should the same be rejected even without looking into the same? - HELD THAT:- When there is a clash/ conflict between the Regulations and the Code, the object of the Code is paramount and not the Regulations which are formed only for the just implementation of the Code. Purely on the basis of technicalities, the rejection of Resolution Plan even without looking into its merits, is certainly an act which shall go against the very spirit of the Code and may even result in a huge loss to the Company. Any Regulation which does not anticipate such a situation and if the same comes in the way of proper justification and implementation of the principles of the Code, the same need not be considered nor can be treated as an impediment in the implementation of the Code. The spirit of the Code is first and then comes the other things. The rejection of the Resolution Plan by the CoC even without opening the envelope containing the Resolution Plan on the ground that the same is submitted after the expiry of the stipulated time fixed by the CoC, is certainly against the law/Code and we hereby direct the Respondent to forthwith consider the Resolution plan of the Applicant on its merits and judicious decision may be taken in the best interest of the parties concerned - the Application is allowed. Seeking exclusion of period of 15 days from the Corporate Insolvency Resolution Process - section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- The Hon’ble NCLAT in its order dated 08.05.2018 in the case of QUINN LOGISTICS INDIA PVT. LTD. VERSUS MACK SOFT TECH PVT. LTD., MOHD. SABIR PARVEZ AND MR. M.L. JAIN, (RESOLUTION PROFESSIONAL) [2018 (6) TMI 904 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI] where it ws held that it is clear that if an application is filed by the ‘Resolution Professional’ or the ‘Committee of Creditors’ or ‘any aggrieved person’ for justified reasons, it is always open to the Adjudicating Authority/Appellate Tribunal to ‘exclude certain period’ for the purpose of counting the total period of 270 days, if the facts and circumstances justify exclusion, in unforeseen circumstances. This Bench, considering the warranting situation in this case, hereby excludes the period of 5 days i.e. the period of pendency of Application No. 1529 of 2018 before this bench from 17.12.2018 to 21.12.2018, considering the facts, the Resolution Professional has to carry out the certain duties and obligations with regard to the resolution plan before submission of same to the COC. In the normal course, the CIRP period will come to an end on 29.12.2018. But in view of the above extraneous circumstances warranting the interference of this Bench which is of the considered view that the period of 5 days during which the Application No. 1529/2018 was pending, is required to be excluded and consequently the CIRP period of 270 days will end on 03.01.2019. Application disposed off.
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