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Judgment
The case is fixed for pronouncement of the order. The order is pronounced in the open court, vide separate sheet.
ORDER Per: Bench
This Interlocutory Application has been filed through e-mode and on 28.03.2025 by the Applicant/RP under Section 60(5) (c) of the Code r/w Regulation 19 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 a/w. Rule 11 of NCLT Rules, 2016, seeking exclusion of 108 days on account of the stay granted by the Hon'ble National Company Law Appellate Tribunal (NCLAT) from 29.11.2024 to 17.03.2025 and grant of extension for submission of repayment plan for further 60 days w.e.f. 19.02.2025 in the on-going insolvency proceedings against the Personal Guarantor of Palav Synthetics Pvt. Ltd. (Corporate Debtor).
It is submitted by the Applicant/RP that CP (IB) No.231/NCLT/AHM/2024 was admitted on 21.10.2024 under Section 100 of the IBC, initiating IIRP against the Personal Guarantor, with a 180- days moratorium effective from that date which is set to expire on 20.04.2025.
The Personal Guarantor challenged the admission order before the National Company Law Appellate Tribunal (NCLAT) in Company Appeal CA (AT) (INS) No. 2147 of 2024. On 29.11.2024, the Hon'ble Appellate Authority granted ad interim relief, directing that while the insolvency process against the Appellant (PG) may continue, no repayment plan shall be finalized until further orders. This interim relief has effectively stayed the finalization of the repayment plan, creating a stand-still period in the resolution process.
We have heard the Ld. Counsel for the Applicant/RP and perused the record. Considering the present facts and circumstances of the case as explained above being the NCLAT's interim order and pending judgment have prevented finalization of any plan, necessitating additional time. Further, the moratorium set to expire on 20.04.2025, the creditors' resolution on 17.03.2025 supports this extension to preserve the process's viability.
Moreover, Regulation 19(1) of the IBBI Regulations, 2019, requires the RP to file an approved repayment plan within 120 days, extendable by this Tribunal in exceptional cases. Rule 11 of the NCLT Rules, 2016, empowers this Tribunal to issue orders ensuring justice, including timeline extensions when warranted.
Therefore, exercising our powers under Rule 11 and Regulation 19, period of 108 days is excluded from 29.11.2024 to 17.03.2025 on account of the stay granted by the Hon'ble NCLAT. Further the IIRP period is further extended by 60 days w.e.f. 19.02.2025 with conditions: -
No further extensions will be granted absent compelling new circumstances.
Registry to communicate this order within three days and upload it online immediately.
In view of the above, IA/483(AHM) 2025 stands disposed of.