TMI Blog2020 (9) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... riod from the CIRP as there is every likelihood that some Resolution Plan will be accepted and/or approved by the CoC. In that event, a Corporate Debtor will be saved from Liquidation and more so, livelihood of number of employees' dependent on the Corporate Debtor will also be saved. A similar view is reiterated by the Hon'ble Supreme Court in Committee of Creditors of Essar Steel India Limited vs. Satish Kumar Gupta and Ors. [ 2019 (11) TMI 731 - SUPREME COURT ] observed that even an extension beyond 330 days' timeline as specified in the IB Code can be granted by the Adjudicating Authority under exceptional circumstances. Under the given facts and circumstances as stated, if the time is extended within the outer limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Order was served upon IRP on 06.05.2019. 2.2. The IRP convened the first meeting of the Committee of Creditors [hereinafter referred as CoC ] on 24.05.2019 and the approval for appointment of new Resolution Professional (hereinafter referred as RP ) was passed by the CoC in the same meeting. 2.3. It is stated by the applicant that there had been various litigations during the CIRP period and out of all, in IA 658 of 2019, the Adjudicating Authority have directed the RP not to proceed further by conducting CoC meeting during the pendency of the aforesaid application. The Order in the said application was passed on 02.12.2019 and the stay was vacated on 19.12.2019. Therefore, for 17 days CoC meeting could not be conducted/convene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneur ship, availability of credit and balance the interests of all the stakeholders including alteration in the priority of payment of government dues and to establish an Insolvency and Bankruptcy Fund, and matters connected herewith or incidental thereto. An effective legal framework for timely resolution of insolvency and bankruptcy would support development of credit markets and encourage entrepreneurship. It would also improve ease of doing business, and facilitate more investments leading to higher economic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kewise, even under the newly added proviso to Section 12, if by reason of all the aforesaid factors the grace period of 90 days from the date of commencement of the Amending Act of 2019 is exceeded, there again a discretion can he exercised by the Adjudicating Authority and/or Appellate Tribunal to further extend time keeping the aforesaid parameters in mind. It is only in such exceptional cases that time can be extended, the general rule being that 330 days is the outer limit within which resolution of the stressed assets of the corporate debtor must take place beyond which the corporate debtor is to be driven into liquidation. 6. However, the Supreme Court has observed that 330 days is the outer limit within which resolution of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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