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2021 (6) TMI 46 - Tri - Insolvency and BankruptcyPublication of Invitation for Expression of Interest - forbearance from functioning as Resolution Professional in respect of the 3rd Respondent M/s. Kamachi Industries Limited. - Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 r/w Rule 11 of the National Company Law Tribunal Rules, 2016 and Regulation 40A & C of the Insolvency And Bankruptcy Board of India (Insolvency Resolution Process For Corporate Persons) Regulations, 2016 - HELD THAT:- In relation to the timelines as fixed by the IBC, 2016 primarily under Section 12 of the IBC, 2016, the Hon'ble Apex Court in the judgement of COMMITTEE OF CREDITORS OF ESSAR STEEL INDIA LIMITED THROUGH AUTHORISED SIGNATORY VERSUS SATISH KUMAR GUPTA & OTHERS [2019 (11) TMI 731 - SUPREME COURT] had an occasion to consider in light of the amendment made to Section 12 of IBC, 2016 by virtue of Insolvency & Bankruptcy Code (Amendment Act), 2019 with effect from 16.08.2019 as to whether 330 days period is mandatory or directory. It is also required to be seen that in the present instance, apart from the delay arising out of any litigation, the nation itself is confronted with a pandemic and in the circumstances the applicability of timelines which had been fixed under Regulation 40A for the completion of the CIR Process by IBBI, the Regulation itself had chosen to exclude from CIR Process the timelines in the wake of COVID-19 under Regulation 40C - it is seen that the outer limit of 330 days has not been completed (i.e.,) at the time when this Application had been moved before this Tribunal. It is also required to be seen that even as per the submission of the Ld. Senior Counsel for the Applicant, the nation is facing an extraordinary situation due to COVID-19 pandemic and a sporadic lockdown is being imposed by the Central Government as well as the State Government which in effect cripples the functioning of RP during the CIRP in a seamless manner. In relation to the claim of the Applicant that because of the overshooting of the timeline and in the circumstances as to whether the CIR Process would become a nullity and that the CIRP is required to be suspended, the Hon'ble NCLAT in the matter of Committee of Creditors of Rosewood Trexim Pvt. Ltd. Through Resolution Professional in Company Appeal (AT) (Insolvency) No. 1066 of 2020 has held that the CoC which was in existence at the time when the lockdown came into force as a sequel to the outbreak of COVID-19 declared as pandemic resulting in all activities related to trade and commerce business reaching to a grinding halt, CoC as an institution cannot be said to have got dissolved, more so, when taking factors of the pandemic into consideration and also in exercise of suo-moto jurisdiction of the Hon'ble Apex Court and the Hon'ble NCLAT wherein the limitation stood excluded - the CoC would not be deemed to have been dissolved at least for the purposes of passing of a resolution seeking exclusion of lockdown period and extension of the CIRP period beyond the prescribed time of 180 days and also allowed exclusion of 203 days due to COVID-19 pandemic has also granted extension of the CIRP period by 90 days. This Application stands dismissed.
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