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Judgment
ORDER
23.03.2022: Heard Learned Counsel for the Appellant as well as Learned Counsel appearing for the Committee of Creditors (CoC).
This Appeal has been filed against the order dated 01.02.2022 passed in I.A 01/ND/2022 by which IRP/RP sought for extension of time for allowing the Successful Resolution Application to submit Performance Guarantee. Under the orders passed by the Adjudicating Authority, the Corporate Insolvency Resolution Process (CIRP) was extended till 30.12.2021. On 30.12.2021, a Resolution Plan was approved by the CoC by e-voting and after approval of the plan, the Application was filed for extension of 15 days’ time as the Successful Resolution Applicant may submit Performance Guarantee. The Adjudicating Authority has noticed earlier proceedings in the case and has refused to extend the time and rejected the Application filed by the IRP/RP.
Learned Counsel for the Appellant submits that the earlier proceedings were not relevant for rejection of the Application of the Applicant since within the time Resolution Plan was received and approved by the CoC and only Performance Guarantee was required to be submitted by the Successful Resolution Applicant for which time was prayed for.
Learned Counsel for the CoC submits that CoC has no objection in extension of time as prayed for by the Applicant.
We have considered the submissions of the Learned Counsel for the parties and have perused the record.
The extension of CIRP was already granted by the Adjudicating Authority till 30.12.2021 during which period Resolution Plan was received and approved. When the Resolution Plan was approved on 30.12.2021, the CIRP proceedings were virtually completed and only for the purpose of submission of Performance Guarantee, time was prayed for. We are of the view that the Adjudicating Authority ought to have extended the time as prayed for to give effect the Resolution Plan which was approved by the CoC on 30.12.2021. The observation of the Adjudicating Authority that 45 days’ extension was granted till 30.12.2021 which was also noticed in the order itself was sufficient for accepting the prayer for extension of 15 days and Adjudicating Authority committed error in rejecting the said prayer. We, thus, allow the Appeal and set aside the impugned order passed by the Adjudicating Authority and grant further extension of CIRP proceedings for one week from today during which period the Performance Guarantee shall be received from Successful Resolution Applicant if not already filed and Application be filed by Resolution Professional before the Adjudicating Authority for approval of the plan.
Learned Counsel for the Successful Resolution Applicant submits that Performance Guarantee has already been deposited on 05.01.2022.
The Appeal is disposed of accordingly.