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Judgment
Hari Venkata Subba Rao, J
Heard Mr. Nishant Kalika, advocate appearing for the Resolution Professional in IA No. 93 of 2019. The above application is filed for extension of
one month time to the Resolution Professional for reporting the transactions covered under Sections 43, 45, 50 or 66 of the Insolvency & Bankruptcy
Code, 2016 (I & BC) to the Insolvency and Bankruptcy Board of India (IBBI) within 150 (one hundred fifty days) of the insolvency commencing date
which is falling due on 19.12.2019.
It is the submission in the application that the RP is required to make determination in respect of the transactions covered under sections 43, 45, 50
or 66 and intimate to the board on or before the one hundred and fifteenth day of the insolvency commencement date and also to make application to
the adjudicating authority on or before the one hundred and thirty-fifth day of the insolvency commencement date under the circumstances when the
corporate debtor is subject to any transactions covered under sections 43, 45, 50 or 66. For determining the same, RP in this regard has appointed
auditor M/s. BDO India LLP to carry out the transaction audit of the corporate debtor. Copy of the appointment letter of transaction auditor is also
attached with the application marked as Annexure-A.
However, the RP is not in a position to make determination in respect of the transactions covered under section 43, 45, 50 or 66 as transaction audit
is under progress and on preliminary evaluation/examination of the transactions the auditor has sought for at least one month time as information flow
from the CD is very stow as the registered office of the CD is based out of Assam and there has been complete unrest imposing curfew in entire
Assam for ten days and internet data services got suspended thereby paralyzing the entire communication with the corporate office of the CD. The
situation has still not regained normalcy & looks will take further time. The CD basically operating pan India from seven locations from the different
parts of the country and therefore, collation of information and data of previous two years prior to the date of insolvency commencement date has also
been one of the major reasons for non-completion of transaction audit as per due date envisaged in the Insolvency Resolution Regulation, 2016.
In view of the above facts and circumstances submitted by the RP, the application deserves to be allowed and accordingly time is extended for one
month from 19.12.2019 to 19.01.2020.
Resultantly, the above application stands disposed of.