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2019 (8) TMI 41 - AT - Insolvency and BankruptcyLiquidation of Corporate debtor - time limitation - Whether in the interest of the Allottees, which is of primary importance in this ‘Corporate Insolvency Resolution Process’, the ‘Jaypee Infratech Ltd.’ (Corporate Debtor) should be allowed to go for ‘Liquidation’ on the ground that 270 days has expired on 6th May, 2019 or the period from ‘17th September, 2018 to 4th June, 2019’ during which the matter remained pending for consideration before the Adjudicating Authority relating to voting share of the Allottees should be excluded for the purpose of counting 270 days? HELD THAT:- Admittedly, no regulation was framed under the ‘Insolvency and Bankruptcy Code’ as to how the voting share of thousands of Allottees will be counted, all of whom come within the meaning of ‘Financial Creditors’ and thereby are members of the ‘Committee of Creditors’. It was in this background the Allottees Association preferred the application before the Adjudicating Authority (National Company Law Tribunal), Allahabad Bench on 17th September, 2018 to decide such issue. The two Hon’ble Members of NCLT differed on the principle on 13th December, 2018 as noticed above and referred the matter to the Principal Bench for placing the matter before Third Hon’ble Member who has delivered its decision by the order dated 24th May, 2019. In the meantime, 270 days lapsed, if counted from the date the proceeding was remitted by the Hon’ble Supreme Court, i.e. 6th May, 2019. The period from 17th September, 2018 i.e the date of application filed by the Association of the allottees for clarification for the order and till the final decision i.e. 4th June, 2019 i.e. the date the matter was finally decided by the Third Hon’ble Member (Total 260 days), can be excluded for the purpose of counting the 270 days. However, as the matter is pending since long, we are not inclined to exclude the total period of 260 days and instead in the interest of the Allottees, we exclude 90 days for the purpose of counting the period of 270 days of ‘Corporate Insolvency Resolution Process’, which should be counted from the date of receipt of the copy of this order. The aforesaid period is excluded to enable the ‘Resolution Professional’/‘Committee of Creditors’ to call for fresh ‘resolution plans’ and to consider them, if so required after negotiations pass appropriate order under sub-section (5) of Section 30 of the I&B Code preferably within a period of 45 days. Rest of the period of 45 days margin is given to remove any difficulty and appropriate order as may be passed by the Adjudicating Authority. Appeal disposed off.
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