Bombay Sales Agency vs JSK Marketing Limited

The present application is moved by Ms. Palak Swapnil Desai (hereinafter called as “the applicant”) under Section 12 (2) of the Insolvency and Bankruptcy Code, 2016 (hereinafter called as “the Code”) seeking extension of another 90 days beyond 180 days to complete Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) of the Corporate Debtor Company namely JSK Marketing Limited (hereinafter called as the “Corporate Debtor”) and for passing an appropriate order/suitable direction in the matter.

The Applicant through the present IA submits that this bench vides its order dated 23.09.2019 in the matter of Bombay Sales Agency (Petitioner) v. JSK Marketing Limited, Corporate Debtor admitted the IB Petition bearing C.P.1545/MB/C-II/2019 and appointed Mr. Abhilash Lal as an Interim Resolution Professional in respect of the Corporate Debtor directing him to take necessary steps in accordance with the provisions of the Code. The IRP had accordingly called for first meeting of CoC on 22.10.2019 wherein IRP expressed his inability to continue as RP. Thus Ms. Palak Swapnil Desai was nominated to act as RP of Corporate Debtor and accordingly in the said meeting of CoC Majority of 94.5% voted in favour of appointing the Applicant as RP. This Tribunal vide its order dated 18.11.2019 replaced the outgoing IRP, Abhilash Lal with appointment of Applicant as RP. She was continued to perform her duties as Resolution Professional (RP) by the members of the Committee of Creditors (CoC).

As it is stated that the CIRP in respect of the present Corporate Debtor has commenced w.e.f. 23.09.2019, therefore, the period of 180 days prescribed for CIRP of the present Corporate Debtor was to be over on 21.03.2020. Hence, the present IA before this bench was filed on

13.03.2020. In view of the above, the Applicant has sought prayer for extension of the CIRP period of the Corporate Debtor.

In addition to the above the applicant Resolution Professional in the present IA has informed about the progress of the CIRP from the date of her appointment as ‘Resolution Professional’ till filing of this application. The Applicant also furnished list of dates and events and synopsis on the progress of the CIRP since 23.09.2019 (date of judgment of the NCLT) till date of filing application for perusal of this bench. The same has been annexed with the present Interlocutory Application.

In addition to the above, the Learned Counsel for the RP during the course of hearing has appraised this bench about the progress made in the

CIRP. Thus, the Resolution Professional took necessary steps towards CIRP of the Corporate Debtor for exploring the possibility of the potential Resolution/revival of the Company. The RP further invited EOI (Expression of Interests) in prescribed Form—G and prepared appropriate Information Memorandum as well as valuation of assets of the Corporate Debtor for the purpose of prospective Resolution Applicants on 28.12.2019.

It is also informed that 14.01.2020 was the last date for receiving Resolution Plans. It is reported that Resolution Professional did not receive any Resolution Plan till date or thereafter. Further, extension of time gets approved beyond 180 days then revised Form G with revised timelines to invite EOI for prospective resolution applicants for CIRP of the Corporate Debtor would be initiated. CoC members suggested that opting for liquidation without giving time for EOI upto the end of CIRP period is not considered favourable hence revised Form G for EOI should be published. CoC Members also suggested that extension of CIRP period will be beneficial as there are considerable amount of debts outstanding so the extended period could be utilised for updation of Books of Accounts, Recovery from debtors, taking advantage of different auction methods to get maximum value for stock and completion of transaction based on forensic Audit.

In view of above, the Applicant convened CoC meeting on 18.02.2020, wherein with a vote share of 83.24%, resolved to seek extension in the CIRP period by 90 days and accordingly this application was filed. Having heard the learned Counsel for the RP through Video Conferencing, the order was reserved.

We have perused the records and duly considered the reasons, grounds submitted by the RP in respect of the present application, the main grounds taken for extension of CIRP are described in the present I.A.

By taking into consideration the grounds in the present I.A, it seems that RP as well as the CoC have conducted the CIRP for inviting potential Resolution Plans and have taken needful steps prescribed under the IBC. Therefore, we are of the view that the present I.A. for extension of time of CIRP as prayed for deserves to be allowed. Hence, it is hereby allowed. Consequently, the CIRP of the Corporate Debtor JSK Marketing Limited, is further extended by 90 days beyond 180 days.

With the aforesaid observations, the present IA No. 1952 of 2020 In C.P. (IB) No. 1545/MB/C-II/2019 is allowed.