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TMI Blog2021 (8) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 2. It was submitted by the Learned Counsel for the Applicant that the CIRP in relation to the Corporate Debtor was initiated by this Tribunal on 24.04.2017 and soon thereafter, the IRP has caused a paper publication to be made in the newspaper calling for the claims from the creditors of the Corporate Debtor. Thereafter, it is seen that the CIRP of the Corporate Debtor initiated by this Tribunal was stayed by the Hon'ble High Court of Madras on 04.05.2017 and the said stay ultimately got vacated on 05.09.2019 by the Division Bench of the Hon'ble High Court of Madras. 3. Upon vacation of stay on 05.09.2019 by the Division Bench of the Hon'ble High Court of Madras, it is seen that an Application was filed by the IRP seeking revival of the CIRP and this Tribunal vide order dated 03.10.2019 ordered for revival of the CIRP of the Corporate Debtor and immediately thereafter publication was again effected by the IRP calling for the claims from the Creditors on 04.10.2019 and consequent to filing of the claims CoC was constituted. 4. It is also seen from the records that in the 5th CoC meeting held on 24.03.2020, a resolution was passed by the CoC members seeking extensio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e oral submissions of the IRP. It is seen from the judgment of the Hon'ble Supreme Court extension/exclusion can be granted by this Tribunal under only extraordinary circumstances beyond the period of 330 days, as mandated under Section 12 of IBC, 2016. However, the Hon'ble Supreme Court in the said decision has also held the time period which has been stipulated therein is not mandatory and only directory which is evident from the observations of the Supreme Court that in the extraordinary circumstances the same can be extended in a particular case which has been demonstrated by Learned IRP in the instant case in view of Covid-19 lock down and the Corporate Debtor being involved in Health care and travelling to the places viz., the branches which are situated within south India is not possible either for the IRP or for any intended Resolution Applicant in relation to the Corporate Debtor which makes the Insolvency Resolution of the Corporate Debtor remote. The said reasons seems to be justified and taking into consideration the peculiarity of the Corporate Debtor and the area in which the Corporate Debtor operates we are of the view that the time period as sought b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that they have shown keen interest to participate in the 2nd round of EOI as and when floated. 11. It was also submitted that the CoC also took note of the fact that in order to carry out various compliances as aforesaid, to revise the Information Memorandum to complete the Eol and RFRP process, to obtain resolution plans and to hold negotiations with the bidders and to finally approve a viable resolution plan, it would require a minimum of six months with effect from 01.06.2021, considering the timelines prescribed in the Regulations. 12. Accordingly a resolution was passed by the CoC with 88.02% voting share to seek extension of CIRP for a further period of 180 days from 01.06.2021. Under the said circumstances, the Applicant has filed the present Application seeking exclusion of 165 days and extension of CIRP by 15 days and to exclude the time period, until the disposal of the present Application. 13. In so far as exclusion of 165 days are concerned, it is seen that the Applicant has sought for the following exclusions; 14. A perusal of the order which has been passed by this Adjudicating Authority would clearly manifest the fact that the period of 330 days of CIRP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the underlying policy of the Code for ensuring timely resolution of 'Company Insolvency'. Undoubtedly, an extension of time for extension of time for 'CIRP' is a 'critical arena'. However, the exercise of the power of extending the time limit by the 'Adjudicating Authority' in negation of the statutory provision of the Code may be desirable in an exceptional/extraordinary circumstances of a given case. 14. Be it noted, that 'speed' is the gist for the working of the 'Bankruptcy Code'. It cannot be gainsaid that the 'Corporate Insolvency Resolution' with approval of 'Plan of Resolution' is ultimately the exclusive domain of the 'Committee of Creditors'. 15. Bearing in mind the word 'mandatorily' found in Section 12(3) of the 'Insolvency & Bankruptcy Code, 2016' was struck down by the Hon'ble Supreme Court in the matter of Committee of Creditors of Essar Steels India Pvt. Ltd. V Satish Gupta reported in (2020) 8 SCC at Pg. 531, this 'Tribunal' comes to a resultant conclusion that ordinarily the time taken pertaining to the Corporate Insolvency Resolution Process of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the present Application was filed before this Tribunal on 25.05.2021 and till the date it was pending i.e. 30.07.2021 can be excluded from the CIRP timelines. Thus, a total of 83 days can be excluded from the CIRP timelines. If the said 83 days are excluded the CIRP in relation to the Corporate Debtor would come to an end on 22.08.2021. 20. As already stated supra the Applicant has not substantiated any exceptional circumstances in order to extend the CIRP in the present case, as per the decision of the Hon'ble Supreme Court in the matter of Essar Steel (supra). Further, we are also of the view that the entire CIRP process in relation to the Corporate Debtor cannot be started afresh from the stage of issuance of Expression of Interest, as the same would entirely upset the CIRP timelines prescribed under IBC, 2016. 21. Thus, for the reasons stated supra, the CIRP in relation to the Corporate Debtor is extended only upto 22.08.2021 and the Applicant is required to finalize the accounts of the Corporate Debtor and also as per the order dated 26.02.2021 the Applicant may file an Application for liquidation after the expiry of the said period in terms of Section 33 of IBC, 2016. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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