2019 (6) TMI 1541 - Tri - Insolvency and Bankruptcy

Tribunal Excludes 194 Days from CIRP Period for Corporate Debtor Revival

In Re : Falcon Tyres Limited

The Tribunal granted the exclusion of the time period from January 22, 2019, till August 03, 2019, totaling 194 days from the statutory period of the ... Exclusion of certain days from CIRP period - direction to exclude the period from January 22, 2019 till August 03, 2019,totally for 194 days from the computation of statutory period of the CIRP etc. - HELD THAT:- The object of the Code is to revive the Company rather than to send it for Liquidation. Since the Govt of Karnataka is also showing interest for revival of the Company for the interest of several employees depending on the Company. It is also relevant to point out here, IA No. 48 of 2019 is filed by M/s.Mapletree Leather Goods Private Limited, U/s 60(5) of the IBC, 2016, by inter seeking the direction to the Respondent to accept their resolution Plan and to restrain the Respondent No. 1 to initiate liquidation proceeding etc, which is also pending disposal. Therefore, it is just and proper to exclude the time as sought for in the interest of justice. Petition hereby disposed of by granting exclusion of time for a period of 194 days from 22.01.2019 till 03.08.2019, from the statutory period of 180+90 days which was expired on 22.01.2019. Issues involved:1. Exclusion of time period in Corporate Insolvency Resolution Process (CIRP) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016.2. Justification for excluding the period from January 22, 2019, till August 03, 2019, from the computation of the statutory period in the CIRP.3. Application for exclusion of time based on unforeseen circumstances and government intervention in the revival of the Corporate Debtor.4. Compliance with legal provisions and past judgments regarding the exclusion of time in CIRP.Detailed Analysis:1. The main issue in this case was the exclusion of a specific time period in the CIRP of a Corporate Debtor. The Resolution Professional filed an application seeking direction to exclude the period from January 22, 2019, till August 03, 2019, totaling 194 days from the computation of the statutory period of the CIRP under Section 60(5) of the Insolvency and Bankruptcy Code, 2016.2. The justification for excluding the mentioned period was based on unforeseen circumstances and government intervention in the revival of the Corporate Debtor. The Government of Karnataka had scheduled meetings to discuss the revival of the Company, and various delays occurred due to reasons such as the demise of an individual, election model code of conduct, and other administrative issues. The exclusion was sought to facilitate the resolution process and protect the interests of the employees dependent on the Company's operations.3. The application for exclusion of time was supported by legal provisions and past judgments. Reference was made to the National Company Law Appellate Tribunal's (NCLAT) decision in the case of Quinn Logistics India Pvt. Ltd. vs. Mack Soft Tech Pvt. Ltd., which outlined circumstances where certain periods could be excluded from the total CIRP period. The Tribunal considered the facts presented in the application and the objective of the Insolvency and Bankruptcy Code to revive the Company rather than opt for liquidation.4. The Tribunal, after careful consideration of the pleadings, material papers, and legal provisions, granted the exclusion of time for the specified period from January 22, 2019, till August 03, 2019, from the statutory period of 180+90 days that had expired on January 22, 2019. The Resolution Professional was directed to expedite the CIRP process without further delay, emphasizing the importance of resolving the matter efficiently while safeguarding the interests of all stakeholders involved.