TMI Blog2020 (1) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... sion beyond the period of 270 days to 330 days. In the facts of the present case, it is evident from the records that CIRP extension was already granted once for a period of 90 days from 23.10.2019 and thereby the 270 days period of CIRP came to an end on 21.01.2020. The second proviso to sub-section 3 of Section 12 of the IBC, 2016 states that the CIRP shall be mandatorily completed within a period of 330 days from the Insolvency commencement date, including any extension of the period of the CIRP granted under this section and the time taken in the legal proceedings - thus, it can be inferred from the second proviso to sub-section 3 of Section 12 of the IBC, 2016 that after granting extension once for a maximum period of 90 days, and u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 24.04.2019 and the Applicant herein was appointed as Interim Resolution Professional (IRP) and subsequently this IRP has been appointed as Resolution Professional in the 1st Meeting of the Committee of Creditors held on 13.06.2019. It is averred that, the Hon'ble NCLAT had granted stay of the order of NCLT on 03.05.2019 and the same came to be vacated only on 30.05.2019 and as a result of which 37 days were lost in the CIRP. 3. It is further averred in the application that, the applicant has been collecting and collating claims, taking custody of the assets of the Corporate Debtor, however owing to the delay at the end of the Corporate Debtor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances, the Applicant has filed the present Application for exclusion of 60 days from the CIRP period. 6. Heard the Counsel for the Applicant and perused the records placed on file. In the facts of the present case, it is to be noted that Section 12 of the IBC, 2016 was amended by the IBC, Amendment Act, 2019, which came into force on 06.08.2019 and for the sake of brevity Section 12 of IBC, 2016 is extracted hereunder; 12. Time-limit for completion of insolvency resolution process. - (1) Subject to sub-section (2), the corporate insolvency resolution process shall be completed within a period of one hundred and eighty days from the date of admission of the application to initiate such process. (2) The resolution professi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ninety days from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019. 7. A bare perusal of Section 12 of the IBC, 2016 mandates that the CIRP period should be completed within the period of 330 days. Further, it has been clearly stated that the CIRP extension, beyond the stipulated period of 180 days, shall be granted only once, not exceeding 90 days. However, the IBC, Amendment Act, 2019 fails to address on how this Tribunal can treat the Applications which seek for CIRP extension beyond the period of 270 days to 330 days. 8. In the facts of the present case, it is evident from the records that CIRP extension was already granted once for a period of 90 days from 23.10.2019 and thereby the 270 days ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal under the Code that only a short period is left for completion of the insolvency resolution process beyond 330 days, and that it would be in the interest of all stakeholders that the corporate debtor be put back on its feet instead of being sent into liquidation and that the time taken in legal proceedings is largely due to factors owing to which the fault cannot be ascribed to the litigants before the Adjudicating Authority and/or Appellate Tribunal, the delay or a large part thereof being attributable to the tardy process of the Adjudicating Authority and/or the Appellate Tribunal itself, it may be open in such cases for the Adjudicating Authority and/or Appellate Tribunal to extend time beyond 330 days. Likewise, even under the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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