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Judgment
Heard Learned Counsel for the Appellant as well as Learned Counsel for the Resolution Professional.
This Appeal has been filed by the Committee of Creditors challenging the order dated 14.09.2023 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Court-IV on IA No.4870/ND/2023 which was an Application filed by the Resolution Professional asking further extension of Corporate Insolvency Resolution Process (CIRP) period by another
60 days. The CoC in its meeting held on 05.09.2023 took a decision to carry out an inter-se challenge mechanism amongst the three Resolution Applicants for the purpose of value maximization and further under Agenda Item No.1, it was resolved to seek extension of time for completion of CIRP by a further period of 60 days. Consequent to the said resolution, an IA was filed by the Resolution Professional on 06.09.2023 i.e. IA No.4870/ND/2023 seeking extension of time for 60 days which came to be rejected on 14.09.2023.
Learned Counsel for the Appellant submits that the Resolution Plan has already before the CoC on which decision is taken to adopt a challenge mechanism and voting has commenced on 04.09.2023. The Adjudicating Authority rejected the Application on the ground that 330 days has passed and no plan has been received by the Adjudicating Authority for approval.
We are of the view that in the facts of the present case when the voting has already commenced and CoC has resolved to seek further extension, Adjudicating Authority was not powerless to grant further 60 days’ time as prayed for. It is a settled law that CIRP has to be completed in maximum period of 330 days but in exceptional circumstances, extension can be granted as has been held by the Hon’ble Supreme Court in “Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta & Ors.- (2020) 8 SCC 531”.
In view of the aforesaid, we are of the view that in the facts of the present case, Appellant has made out a case for extension of 60 days’ time. We allow the Application IA No.4870/ND/2023 and grant 60 days’ time for completion of the process from today. It is made clear that Resolution Professional after completion of the process may file Application within 60 days as allowed before the Adjudicating Authority for approval of the plan, if any.
The Appeal is disposed of with the aforesaid direction.