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2021 (1) TMI 105 - Tri - Insolvency and BankruptcySeeking exclusion of 54 days from CIRP - permission to Resolution Professional to call for CoC meetings to deliberate and vote on the Resolution Plan received from M/s. Earthin Projects Ltd and file necessary application/memos before this Tribunal within 60 days from the date of orders of this Tribunal - HELD THAT:- It is observed that after the initiation of CIRP, a period of 69 days was lost due to various reasons as stated in the application out of which a period of 15 days was already excluded by this Adjudicating Authority on various dates i.e., 27.01.2020 and 04.02.2020, now that the applicant has sought for exclusion of remaining 54 days from CIRP. It is pertinent to note that the judgment of the Hon'ble Supreme Court has held in Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta & Ors. [2019 (11) TMI 731 - SUPREME COURT] where it was held that while leaving the provision otherwise intact, we strike down the work 'mandatorily' as being manifestly arbitrary under Article 14 of the Constitution of India and as being an excessive and unreasonable restriction on the litigant's right to carry on business under Article 19(l)(g) of the Constitution. The effect of this declaration is that ordinarily the time taken in relation to the corporate resolution process of the corporate debtor must be completed within the outer limit of 330 days from the insolvency commencement date, including extensions and the time taken in legal proceedings. Keeping the guidance of the Hon'ble Supreme Court in view and considering the submissions, facts and circumstances of case, interest envisaged by the Prospective Resolution Applicant for resolution of Corporate Debtor and in view of the decision of CoC through email, as well as the economic scenario emerging due to COVID-19 pandemic and it's fall out, this Adjudicating Authority observes that exclusion of time period enabling for completion of CIRP would be in the interest of all stakeholders, to allow the completion of CIRP rather than going for liquidation of the Corporate Debtor which should only be initiated as a last resort - exclusion of period of another 54 days from calculation of CIRP period is approved. This exclusion is granted on having considered the steps already been taken by the RP, approval by the CoC with 74.05% acceptance through email and the current stage of CIRP in the case of the present Corporate Debtor i.e.. M/s. Indu Projects Limited - application disposed off.
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