M/s. Ada Cellworks Wireless Engineering Private Limited vs M/s. Global Towers Limited

Per: H.P. Chaturvedi, Member (Judicial)

The present application is preferred by Mr. Laxmikant Yeshwant Desai (hereinafter called as “the Applicant”) Under Section 60 (5) of the IBC, 2016 and Regulation 40C of the IBBI, Regulations 2016, has sought further extension of the CIRP period so as to complete the Corporate Interim Resolution Process of the Corporate Debtor M/s. Global Towers Limited (hereinafter called as the “Corporate Debtor”) and for passing order/appropriate direction that this Tribunal may deem fit in the present matter. The reliefs being sought for in the present IA are stated as under: -

The present Applicant/Resolution Professional states that the CIRP process was commenced in respect of Corporate Debtor vide an Order dated 29.08.2019 passed by this Tribunal. Thereafter the Applicant/Resolution Professional was appointed as Resolution Professional of the Corporate Debtor by this Tribunal vide an Order dated 10.12.2019. It is also contended that after completion of initial period of 180 days this Adjudicating Authority further extended for 60 days vide Order passed in IA No. 729 of 2020.

Hence, the present Application is taken out under Section 60 (5) of the IBC 2016 and Regulation 40C of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations 2016 seeking exclusion of period from March 25, 2020 to December 31, 2020 i.e. 282 days completion of CIRP of the Corporate Debtor.

The Applicant/Resolution Professional was appointed as Resolution Professional of Corporate Debtor vide Order of the Hon’ble NCLT, Mumbai Bench, on December 10, 2019. The certified copy of the said order was received on December 24, 2019.

It is submitted that the Government of India imposed a nation-wide lockdown from March 25, 2020 in order to curb the spread of the Corona virus and thereafter issued several orders for extension of the lockdown in the country. Further, it is submitted that the lockdown due to NCOVID-19 pandemic in the state of Maharashtra is still in force, though some relaxation has been issued from time to time.

The Applicant/Resolution Professional took all necessary step so as to complete the CIRP and filed its progress Report pursuant to an order passed by Hon’ble NCLT, Mumbai Bench.

It is stated that the RP has duly appointed the Tax Consultant, Legal Counsel, Two Valuers (each) for valuation of land & building and Securities and Financial Asset (SFA) and Transaction Auditor as approved which has been approved by the CoC in its 2^nd CoC meeting.

Thereafter, the Applicant/Resolution Professional convened 3^rd CoC meeting on February 19, 2020. In the 3^rd CoC meeting, the appointment of all valuers and the transaction auditor were ratified and duly confirmed by the CoC. In that meeting, the CoC, further passed a resolution authorizing the Resolution Professional to seek extension of the CIRP period of 60 days to enable prospective applicants, if any to submit their Resolution Plans, the last date of which as per the published FORM G, was March 5, 2020.

Meanwhile as per the direction of this Tribunal 2^nd Progress Report dated February 27, 2020 was filed by the RP and the same was heard and taken on record by this Tribunal.

It is submitted that various responsibilities, functions including compliances those were to be completed as per the provisions of IBC, 2016 could not be completed or could even commenced because of lockdown measures pursuant to pandemic Covid-19 situation. Hence the present application seeking for exclusion of the said period of 282 days in calculating the time period for completion of the extended CIRP period of the Corporate Debtor and further to utilize the remaining period of 32 days of CIRP after exclusion/exemption of lockdown restriction.

It is hereby submitted that out of the 60 days period that CIRP extension was allowed by the Hon’ble NCLT, Mumbai Bech vide IA 729 of 2020, but only 28 days could be utilized i.e. from February 26, 2020 to March 24, 2020, as the lockdown became effective from March 25, 2020 onward. Hence, 32 days (60 days less 28 days) out of the total CIRP extended period would still be available to the Resolution Professional so as to complete the CIRP process.

The Applicant submits that the estimated date for closure of insolvency process of the Corporate Debtor would end February 1, 2020. Thus, in the interest of justice and so as to meet the objectives of the Insolvency & Bankruptcy Code, 2016 and to maximize the value of the assets of the Corporate Debtor, an exclusion of 282 days needs to be granted and thereafter permission of utilizing of the balance 32 days (out of the extension of 60 days already granted) to be considered to complete the CIRP. Accordingly, if this IA allow the above, then the date of completion of the extended CIRP period would be up to February 1, 2021.

We are satisfied with the submissions that the CIRP needs to be extended. Accordingly, the present application is deserved to be allowed in terms of its prayer clause by granting permission to utilized the remaining available period of CIRP excluded/exempted after lockdown for counting the process of CIRP. By following the decision of Hon’ble Supreme Court in Miscellaneous Application No. 665/2021 in SMW(C) No. 3/2020” by excluding/exempting the period from 15th March 2020 till 14th March 21 and now again until further order.

For the sake of convenient the relevant portion of the Order dated 27.04.2021 of the Hon’ble Supreme Court is being reproduced herein below:

By following the above decision of the Hon’ble Supreme Court and with our aforesaid observation and direction, the present IA No. 2450 of 2020 In CP (IB) No. 3513 of 2018 is allowed and stands disposed of.