2019 (10) TMI 1500 - Tri - Companies Law

Seeking permission to continue the CIR Process and permit him to make public announcement afresh - time period of the earlier announcement has got lapsed due to the stay order issued by the Hon ble High Court of Madras - HELD THAT - Since the stay order dated 04.05.2017 issued by the Hon ble High Court of Madras has been vacated the Order dated 21.04.2017 passed by this Adjudicating Authority gets revived. Therefore the Interim Resolution Professional is directed to continue the CIR Process against the Corporate Debtor by causing fresh Public Announcements as per Regulation 6 (1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Debtor) Regulations 2016 inviting the claims from the creditors as the earlier Public Announcements has got lapsed due to the reason stated above and to verify the claims of the creditors in consonance with the provisions of I B Code 2016 and IBBI (CIRP) Regulations 2016. Application disposed off.

Summary

Issues:
1. Initiation of Corporate Insolvency Resolution Process (CIR Process) against a Corporate Debtor.
2. Appeal by the Corporate Debtor against the initiation order.
3. Stay granted by the High Court on the CIR Process.
4. Vacation of the stay order by the Division Bench of the High Court.
5. Request to continue the CIR Process and make a fresh public announcement.
6. Direction to the Interim Resolution Professional to continue the CIR Process and verify creditor claims.

Analysis:
1. The Tribunal noted that the Corporate Insolvency Resolution Process (CIR Process) was initiated against the Corporate Debtor as per the Order dated 21.04.2017. The Interim Resolution Professional was appointed to manage the affairs of the Corporate Debtor and had issued public announcements inviting claims from creditors as required by regulations.

2. Subsequently, the Corporate Debtor filed an appeal against the initiation order dated 21.04.2017. A Company Petition was also filed before the High Court of Madras, leading to a stay being granted on 04.05.2017. However, the Division Bench of the High Court later vacated the stay on 05.09.2019, allowing the proceedings under the Insolvency and Bankruptcy Code (IBC) to continue against the Corporate Debtor.

3. In light of these developments, the Interim Resolution Professional requested permission to continue the CIR Process and issue a fresh public announcement, as the earlier announcement period had lapsed due to the stay order from the High Court of Madras. The Interim Resolution Professional sought to verify creditor claims in accordance with the I&B Code, 2016, and relevant regulations.

4. The Tribunal, considering the vacation of the stay order by the High Court, directed the Interim Resolution Professional to proceed with the CIR Process against the Corporate Debtor. The Professional was instructed to issue fresh public announcements inviting creditor claims, as the previous announcements had expired due to the stay. The Interim Resolution Professional was also mandated to verify creditor claims in compliance with the provisions of the I&B Code, 2016, and IBBI (CIRP) Regulations, 2016, adhering to the specified timeline.

5. Consequently, the Tribunal disposed of the application, affirming the revival of the initiation order dated 21.04.2017 and instructing the Interim Resolution Professional to continue the CIR Process, conduct fresh public announcements, and verify creditor claims as per the regulatory framework.