Messrs Priyadarsini Limited

Per: SHRI K. ANANTHA PADMANABHA SWAMY, MEMBER (JUDICIAL)

This application is filed by the applicant/ Resolution Professional under section 40C of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2020, seeking exclusion of the lockdown period from 21.03.2020 to 31.08.2020 in the CIRP of the Corporate Debtor.

The Tribunal has admitted the main petition, viz. CP (IB) No.369/10/ HDB/ 2019 filed by the Corporate Applicant/ M/s Priyadarsini Limited vide order dated 03.09.2019. The applicant herein has replaced Shri J. Manivannan as IRP vide order dated 12.12.2019 passed in IA No.1125 of 2019 by this Tribunal.

CIRP period of 180 days has commenced on 03.09.2019 and ended on 01.03.2020. In the meanwhile, the Tribunal has extended the CIRP period for 90 days vide order dated 28.02.2020 in IA No.192 of 2020. Said extended period was to expire on 31.05.2020. It is averred in the IA that Government of India has declared lockdown in the country due to COVID-19 pandemic from 24.03.2020, whereas Government of Telangana has declared lockdown from 21.03.2020, and the IBBI has introduced and inserted Regulation 40C in the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2020. Relying on section 40C of the said Regulations, prays for exclusion of lockdown period from 21.03.2020 to 31.08.2020.

It is averred in para 7 of the IA that the Resolution Professional had received EoIs belatedly from two or three interested prospective Resolution Applicants, who are willing to submit their Resolution Plans in case CIRP is extended by this Tribunal. If such extension is granted, the interested bidders would get adequate time to submit their Resolution Plans and engage with CoC.

Thus, aggregate period of 330 days as permitted under 2nd Proviso to section 12(3) read with Regulation 40 of the IBBI (CIRP) Regulations, 2016, would have been over by 29.07.2020. However, the applicant seeks exclusion of lockdown period from 21.03.2020 to 31.08.2020 in CIRP period.

CIRP period of 330 days, which ought to have been ended on 29.07.2020 got suspended from 22.03.2020 due to pandemic situation. In the meanwhile, Government of India issued guidelines to lift the lockdown and restrict the lockdown to only containment zones. In view of the above submissions the applicant/ Resolution Professional prayed that orders may be passed keeping the period of lockdown out of the reckoning period of the CIRP of the Corporate Debtor.

We have heard the Resolution Professional. This application is filed for exclusion of lockdown period from CIRP. The learned counsel for the Resolution Professional would contend that due to lockdown declared by the Government of India as well as Government of Telangana, CIRP could not be completed.

The applicant relied on Regulation 40C of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ('IBBI Regulations' for brevity) and contended that the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purpose of timeline or any activity that could not be completed due to such lockdown in relation to CIRP.

The learned counsel contended that the Resolution Professional is filing the present application for exclusion of the lockdown period from 21.03.2020 to 31.08.2020. It is true that there was lockdown due to COVID-19 pandemic imposed in containment zones from 22.03.2020, not from 21.03.2020 as contended by the applicant. By virtue of Regulation 40C of IBBI Regulations, this period is to be excluded from the CIRP. The exclusion works out as under: CIRP commenced on 03.09.2019 180 days to expire on 01.03.2020 Extended period of 90 days to expire on 30.05.2020 - Extension availed: 01.03.2020 to 21.03.2020 21 days Unutilised extension due to lockdown 69 days - Exclusion of 69 days from 01.09.2020 ends on 08.11.2020

Thus, CIRP of 270 days should have been completed by 30.05.2020. Actual days lost in the lockdown from 22.03.2020 to 31.08.2020, were 69 days. This period is to be added to CIRP from 01.09.2020. Thus, CIRP is to be completed on or before 08.11.2020. The Resolution Professional is directed to complete the CIRP by 08.11.2020. IA No.730 of 2020 is accordingly disposed of.