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2022 (3) TMI 992 - NATIONAL COMPANY LAW TRIBUNAL , HYDERABAD BENCHSeeking extension of CIRP period by 60 days as per the decision taken in the 18th COC meeting - there is no clarity from the NITHM/Govt. of Telangana on terms of renewal of lease - HELD THAT:- Admittedly, this application seeking one more extension of 60 days for competition of CIRP, has been filed in the backdrop of availing of the two exclusions for a total period of 159 days and one extension of 90 days, once again reiterating the same ground, which is nothing but one of the "conditions" put forth by the two out of the four prospective resolution applicants, Viz., M/s. Anirudh Agro Farms and M/s. Shreemukh Builders that the lease should be allowed be renewed by another 33 years lest, the first payment will not be made, on the premise that the director of NITHM, who is one of the members of CoC has 'informed' the CoC that the clause enabling renewal of lease by another term is under consideration by the Government of Telangana. Hon'ble Supreme Court of India, in Committee of Creditors of Essar Steel vs. Satish Kumar Gupta & Ors. [2019 (11) TMI 731 - SUPREME COURT], while striking down, the word "mandatorily" used in the amended proviso 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(1)(g) of the Constitution. A prospective Resolution Applicant is required to submit an unconditional EOI within the time stipulated under the invitation, which shall not be less than fifteen days from the date of the issue of invitation. Form G (IFEI), in this case has been published on 04.04.2021 by the RP clearly discloses that the property which is in a 4 star hotel is in a leased land. Form-G/IFEI admittedly did not contain any assurance of incorporation of renewal clause in the existing lease document - In the case on hand, since the plans submitted by the above Prospective Resolution Applicants being conditional, the Resolution Professional ought to have insisted the Prospective Resolution Applicants to make their plans un-conditional and ought not to have included in the provisional list of eligible Prospective Resolution Applicants. However, the Resolution Professional treated these two conditional plans as eligible and included them in the list of eligible Prospective Resolution Applicants. Thus, it as clear as crystal that the CoC, instead of rejecting at the threshold the resolution plans submitted by the prospective resolution applicants Viz., M/s. Anirudh Agro Farms and M/s. Shreemukh Builders, as the same being conditional (sic), has been rigorously pursuing "the cause" of the prospective resolution applicants by seeking exclusion and also extension of time, so that the condition; by these prospective applicants could be complied with. Therefore, allowing an application of this nature results in extending time to perpetuate a 'wrongful act' by the CoC and the Resolution Professional, which is neither the intent nor the object of IBC, hence relief prayed for is liable to be rejected out-rightly. The members of CoC and the Resolution Professional are responsible for the loss of time prescribed under the Code, which is valuable and limited for completion of CIRP - In order to facilitate such resolution, Suo moto exclusion is granted of the time consumed in pursuing this application, i.e., from 1st March 2022 till the date of this Order. In default, the CoC shall resort to the next step as provided under IBC, without consuming any further time on pursuing the existing conditional plans, since any further delay in taking necessary steps will result in further deterioration of the already eroded asset value. This petition is therefore disposed of.
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