2020 (9) TMI 792 - Tri - Insolvency and Bankruptcy

Exclusion of period of 7 days from CIRP end date i.e. 06.02.2020 for the purpose of approving Resolution Plan - HELD THAT - Considering the submissions facts and circumstances of case stage of CIRP and in view of the decision of CoC in its 9th meeting this Adjudicating Authority observes that only a short time period is left for completion of CIRP and it would be in the interest of all stakeholders to allow the completion of CIRP rather than going for liquidation of the Corporate Debtor. Accordingly it is approved to exclude a period of another 7 days from calculation of CIRP period which is ending on 06.02.2020. As such the applicant will have another 7 days w.e.f. 07.02.2020 for completion of CIRP process of the Corporate Debtor. This exclusion is granted on having considered the steps already taken by the RP and the current stage of CIRP in the case of the present Corporate Debtor i.e. M/s. Indu Projects Limited. Application disposed off.

Summary

Issues:
Application under section 60(5) of the Insolvency and Bankruptcy Code seeking exclusion of 7 days from CIRP end date for approving Resolution Plan.

Analysis:
The Application was filed seeking an order to exclude 7 days from the CIRP end date for approving the Resolution Plan. The history of the case revealed the appointment of the IRP and RP, along with various orders passed by the Adjudicating Authority. The CoC had previously sought exclusions of days from the CIRP period, which were approved by the Authority. The current request for exclusion of 7 days arose due to delays caused by external factors such as bank strikes and holidays, affecting the CoC's ability to finalize the Resolution Plan.

The Adjudicating Authority considered the facts, submissions, and the stage of the CIRP in line with the guidance from the Hon'ble Supreme Court's judgment in Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta & Ors. The Supreme Court's ruling emphasized completing the insolvency resolution process within 330 days but allowed for extensions in exceptional cases where stakeholders' interests were paramount. In this context, the Authority noted that a short period remained for completing the CIRP and decided to grant the exclusion of 7 days to facilitate the resolution process instead of opting for liquidation.

The decision to exclude the additional 7 days was made to benefit all stakeholders involved in the CIRP of the Corporate Debtor, M/s. Indu Projects Limited. The Authority acknowledged the efforts made by the RP and the current stage of the CIRP, leading to the approval of the exclusion request. Consequently, the Application under IA No. 126 of 2020 was disposed of, allowing the applicant an extended period for completing the CIRP process of the Corporate Debtor starting from 07.02.2020.