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2021 (7) TMI 494 - Tri - Insolvency and BankruptcySeeking grant of 45 days' time to the Directors of the applicant company to clear off the debt due to the Respondent in the IBA and the other Creditor CSB Bank - re-structuring the applicant company - HELD THAT:- To arrive at a conclusion whether further time can be granted to the applicants to settle the matter by restructuring the company, we have gone through the 2005 Report of the Expert Committee on Company Law (JJ Irani Committee Report) in which it is stated that to provide an opportunity for genuine effort to explore restructuring/rehabilitation of potentially viable businesses with consensus of stakeholders reasonably arrived at. Where revival/rehabilitation is demonstrated as not being feasible, winding up should be resorted to. Where circumstances justify, the process should allow for easy conversion of proceedings from one procedure to another. This will provide opportunity to businesses in liquidation to turnaround wherever possible. Similarly, conversion to liquidation might be appropriate even after a rehabilitation plan has been approved if such a plan was procured by fraud or the plan can no longer be implemented. Even though the time sought by the Applicants have already expired, taking into account the fact that the applicants have filed this application on 09.04.2021, exercising the discretionary power of this Tribunal under Rule 11 of the NCLT Rules, 2016, this Tribunal dispose of the application - The Applicants are granted 30 days' time from today to clear off the debt due to the Respondent in the IBA and another Creditor CSB Bank, so as to get re-structured the Applicant Company. Dated the 28th day of June, 2021.
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