TMI Blog2021 (1) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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(l)(g) of the Constitution. The effect of this declaration is that ordinarily the time taken in relation to the corporate resolution process of the corporate debtor must be completed within the outer limit of 330 days from the insolvency commencement date, including extensions and the time taken in legal proceedings. Keeping the guidance of the Hon'ble Supreme Court in view and considering the submissions, facts and circumstances of case, interest envisaged by the Prospective Resolution Applicant for resolution of Corporate Debtor and in view of the decision of CoC through email, as well as the economic scenario emerging due to COVID-19 pandemic and it's fall out, this Adjudicating Authority observes that exclusion of time period enabling for completion of CIRP would be in the interest of all stakeholders, to allow the completion of CIRP rather than going for liquidation of the Corporate Debtor which should only be initiated as a last resort - exclusion of period of another 54 days from calculation of CIRP pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 69 days from CIRP period for the reasons said in the Application. The Adjudicating Authority vide its order dated 26.11.2019 in IA No. 1062/2019, allowed the extension of 60 days from the CIRP period. d. That the CoC in its 9 ' meeting held on 18.01.2020 have resolved with 86.27% votes in favor of the resolution authorizing RP to file an Application before this Adjudicating Authority seeking an exclusion of 9 days from the CIRP period, considering various factors including negotiations with resolution applicants, voting on the Resolution plan etc., this Adjudicating Authority vide its order dated 27.01.2020 in IA No. 92 of 2020, allowed the exclusion of 8 days from the CIRP period. e. That in view of 66% voting of CoC members for extension of CIRP. the RP once again filed an Application for exclusion of another 7 days from the CIRP period, this Adjudicating Authority allowed the same from the computation of CIRP period. f. The following are the important dates and details of CIRP period of the Corporate Debtor as stated: Date of Admission of CIRP 25.02.2019 Delay of 8 days ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il received 2 Indian Overseas Bank 6.24 Approval mail received 3 UCO Bank 4.95 Approval mail received 4 Edelweiss ARC Ltd 11.54 Approval mail received 5 SREI Infrastructure Finance Ltd 2.19 Approval mail received 6 Syndicate Bank 5.55 Approval mail received 7 Canara Bank 5.03 Approval mail received 8 Central Bank of India 3.20 Approval mail received 9 Andhra Bank 2.65 Approval mail received 10 Punjab National Bank 5.40 Approval awaited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall go against the very spirit of the Code and may even result in a huge loss to the Company. Any Regulation which does not anticipate such a situation and if the same comes in the way of proper justification and implementation of the principles of the Code, the same need not be considered nor can be treated as an impediment in the implementation of the Code. 9. For all the aforementioned reasons we are of the considered view that the spirit of the Code is first and then comes the other things. The rejection of the Resolution Plan by the CoC even without opening the envelope containing the Resolution plan on the ground that the same is submitted after the expiry of the stipulated time fixed by the CoC, is certainly against the law/Code and we hereby direct the Respondent to forthwith consider the Resolution plan of the Applicant on its merits and judicious decision may be taken in the best interest of the parties concerned. l. That the Corporate Debtor lost period of 69 days in the CIRP due to various procedural delays and circumstances beyond control of Resolution Professional and even considering the 15 days exclusion granted by this Adjudicating Authority, still t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st be completed within the outer limit of 330 days from the insolvency commencement date, including extensions and the time taken in legal proceedings. However, on the facts of a given case, if it can be shown to the Adjudicating Authority and/or Appellate Tribunal 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. 5. Keeping the guidance of the Hon'ble Supreme Court as above in view and considering the submissions, facts and circumstances of case, interest envisaged by the Prospective Resolution Applicant for resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X
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