TMI Blog2021 (6) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... on completion of 330 days in terms of the second proviso to section 12(3) of the Code) - This sleight of hand in breaching the CIRP timeframe more than a year beyond the maximum period of 330 days for the completion of the process, but somehow fitting it into the legal time frame through the device of exclusions must be called out. A well-meaning stratagem devised by the Hon'ble Supreme Court in COMMITTEE OF CREDITORS OF ESSAR STEEL INDIA LIMITED THROUGH AUTHORISED SIGNATORY VERSUS SATISH KUMAR GUPTA OTHERS [ 2019 (11) TMI 731 - SUPREME COURT] declaring that if, on the facts of a given case, it can be shown to the Adjudicating Authority or the Appellate Authority under the Code that only a short period of time is left for complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16/KB/2021 in CP(IB) No. 634(KB)/2017 has been filed by the Resolution Professional of Jhabua Power Limited (Corporate Debtor) under section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with regulation 40C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution for Corporate Persons) Regulations, 2016, and rule 11 of the National Company Law Tribunal Rules, 2016, seeking extension of time period for completion of the Corporate Insolvency Resolution Process (CIRP) from 01.05.2021 to 15.06.2021. 2. It is stated that Resolution Plans were submitted by two Resolution Applicants, namely, NTPC Ltd. and Adani Power Ltd., on 30.12.2019 and multiple rounds of discussion and commercial negotiations with the resolution App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Promoters is not in the prescribed format. The proposal for withdrawal under section 12A of the IBC read with regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 has to be routed through a lender who has filed the application for initiation of CIRP before the Adjudicating Authority along with a Bank Guarantee covering the entire CIRP cost. 6. It is also stated that the revised Resolution Plan is being discussed between the Committee of Creditors and NTPC and there is a likelihood of resolution of the Corporate Debtor since the plan submitted by NTPC on 16.04.2021 represents significant improvement from its earlier plan. 7. In the 14th meeting of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod, i.e., upto 01.05.2021 positively, and that no further extension shall be granted. 12. Our exhortation to complete the CIRP on or before 01.05.2021 has fallen on deaf ears. Instead, we are being presented with a fait accompli once again, thinking that the Adjudicating Authority will grant the exclusion sought for, as a matter of course. It is almost as if the CoC and the resolution applicant are both under an impression that just because resolution is preferable over liquidation, and the resolution applicant is a State entity, any number of exclusions will be granted just for the asking. Granting the present request (for exclusion upto 15.06.2021) will mean that the CIRP has carried on for a period of 483 days beyond the outer limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 330 days, is being misused time and again to cover up the tardy process of completion of CIRP. In the bargain, the immediately preceding sentence of the same judgment in the same page and paragraph, 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, has been completely relegated to the dustbin, while the Adjudicating Authority is left to salvage the situation. 15. Therefore, while we grant the prayer for extension of the CIRP from 01.05.2021 till 30.06.2021 (since it may well-nigh be impossible to complete it by 15.06.2021 as prayed for), for completion of the Corporate Insolvency Resolution Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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