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Judgment
O R D E R
Per: Balraj Joshi, Member (Technical)
IA(IBC)/ 1658/KB/2022 is an application is filed under section 12(2) of the Code , 2016 filed by the RP seeking exclusion of time of the CIRP owing to the time taken in the judicial proceedings for making IA 690/2022.
It is submitted that the CIRP in the matter was started on 11th February, 2022. In the CIRP process of the CD progressed as the per laid down scheduled in the regulation 40A, till 15th July, 2022, when the process was hampered due to filing of an application by SIDCL claiming ownership rights on 3.5.Acres out of 8 Acres, on which the property of the Corporate Debtor stands.
In view of the SIDCL application, some of the PRAs had sought extension of time for submission of resolution plan. On this ground and in the interest of resolution , an extension of time was granted by the Adjudicating Authority on 2nd August, 2022 as 180 days of the CIRP got over on 10th August,2022.
It is further submitted by the Ld. Counsel for the liquidator, that five resolution plans have been received till 30th September, 2022.Meanwhile, the matter of the SIDCL claiming the rights over the property of Corporate Debtor travelled to Hon’ble NCLAT who on 12th October, 2022 dismissed the appeal with the directions to this Adjudicating Authority to consider the matter and dispose of the same as earliest as possible.
In view of the pending litigation on this accord, an extension from 270 to 330 days was also sought vide IA No. 1376/ 2022 which was granted on 12th November, 2022 and the time was enlarged to 7th January 2023 and in order to keep the overall enlargement of time within 330 days. The present IA has been filed for exclusion of time consumed in the adjudication of SIDCL application.
Under section 12(2) of the Code, the resolution process of a corporate debtor should be completed within 330 days of the insolvency commencement date. The Hon’ble Supreme Court has held that while the general rule is that 330 days is the outer limit within which resolution of corporate debtor must take place, however, in exceptional cases, the period of CIRP of a corporate debtor can be extended even beyond 330 days, if it can be shown that it is the interest of all stakeholders that the corporate debtor be put back on its feet instead of being sent into liquidation.[ Ref: Committee of Creditors of Essar Steel India Limited Through Authorised Signatory v Satish Kumar Gupta and Ors,(2020) 8 SCC 531 (Para 127).
In view of the forgoing, we hereby exclude the time 180 days from the time. Since the further enlargement of time would dependent upon the disposal of SIDCL application bearing IA No. 690/KB/2022,the same be listed on 08/02/2023.
Accordingly, IA No. 1658/KB/2022 is allowed in above terms and disposed of.
Certified copy of the order may be issued to all the concerned parties, if applied for, upon compliance with all requisite formalities.