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2020 (10) TMI 275 - Tri - Insolvency and BankruptcyMaintainability of application - Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the N.C.L.T. Rules, 2016 - Whether a successful Resolution Applicant can file an application under the provisions of Section 60(5) of the Code, for extending the time stipulated for complying with the terms and conditions mentioned in the Resolution Plan? HELD THAT:- Nobody has questioned and nobody probably can question the Resolution Applicant after its Plan has already been approved by the COC and then by the Adjudicating Authority. It has already entered the shoes of the Corporate Debtor, and started doing all that was required to be done by the erstwhile Corporate Debtor, including the change of its directors for which necessary correspondence is stated to have been made by the Resolution Applicant. However, since the applicant has referred to and relied upon certain decisions, we may notice the view taken therein. On going through various decisions from the Hon'ble Supreme Court, Hon'ble Appellate Tribunal and our coordinate Bench of NCLT Chandigarh, whereby the period of lock-down has been ordered NOT to be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown in relation to a corporate insolvency resolution process, let us now revert back to the only question involved in the present set of facts and circumstances - Here in this case, the CIRP came to an end once the Resolution Plan had already been approved by the CoC, and thereafter by this Adjudicating Authority. The only issues that the Resolution Applicant has is, the litigation with other local authorities, which led him to file some litigation and the said litigation has delayed the execution of the Resolution Plan. For the delay in fighting litigation with other local authorities, no provision of the IBC could be invoked. That is a matter between the Resolution Applicant and the other third parties, for which no such permission or extension of time was required from this Adjudicating Authority. But since the Applicant has filed an application under Section 60(5), of the Code, even though these provisions could not have been invoked, but looking at the special circumstances due to the spread of Covid-19, this may also be considered to be the genuine contributory cause of delay in execution of the Resolution Plan. The implementation schedule of the Resolution Plan be extended for another period of 6 months from 24.05.2020 to 24.11.2020 - application allowed.
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