Tribunal excludes 148-day stay period, directs continuation of CIRP for Sriramagiri Spinning Mills. The Tribunal granted the Resolution Professional's application to exclude the 148-day stay period during the Corporate Insolvency Resolution Process ...
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Tribunal excludes 148-day stay period, directs continuation of CIRP for Sriramagiri Spinning Mills.
The Tribunal granted the Resolution Professional's application to exclude the 148-day stay period during the Corporate Insolvency Resolution Process (CIRP) of Sriramagiri Spinning Mills Limited. The period of stay from 06.12.2018 to 01.05.2019 was excluded from the calculation of the 180-day CIRP duration. The Interim Resolution Professional was directed to continue the process from 11.06.2019 onwards in accordance with the Insolvency & Bankruptcy Code and related Regulations.
Issues: - Application for directions to exclude the period of stay of Hon'ble High Court of Telangana during the Corporate Insolvency Resolution Process (CIRP).
Analysis: 1. Admission of Petition and Appointment of IRP: The Tribunal considered the Application filed by the Resolution Professional regarding Sriramagiri Spinning Mills Limited under Sections 18 and 60 (5) (c) of the Insolvency & Bankruptcy Code, 2016. The petition was admitted under Section 7 of the IBC by Oriental Bank of Commerce, and an Interim Resolution Professional was appointed.
2. Impact of Stay Order: Following the admission of the petition, a public announcement was made inviting claims. However, the Hon'ble High Court of Telangana granted an interim stay on the Corporate Insolvency Resolution Process (CIRP), leading to a standstill in the proceedings. The stay was eventually vacated by the High Court, allowing the CIRP to proceed.
3. Request for Exclusion of Stay Period: The Resolution Professional sought exclusion of the 178-day stay period from the CIRP under Section 12 (1) of the IBC, 2016. Additionally, directions were requested for setting new cut-off dates for claim submissions, constituting the Committee of Creditors, and conducting the 1st CoC meeting.
4. Judicial Precedent and Decision: The Tribunal relied on the decision of the Hon'ble NCLAT regarding the exclusion of certain periods from the CIRP, especially when stayed by a court of law. The period of stay from 06.12.2018 to 01.05.2019 was excluded from the computation of the 180-day CIRP period, with the IRP directed to proceed with the process from 11.06.2019 onwards.
5. Final Decision: The Tribunal allowed the Application, excluding the 148-day stay period for the purpose of calculating the 180-day CIRP duration. The IRP was instructed to continue the process in accordance with the provisions of the Insolvency & Bankruptcy Code and related Regulations from 11.06.2019.
6. Conclusion: The Application was disposed of, granting the requested exclusion of the stay period and providing clear directions for the IRP to move forward with the Corporate Insolvency Resolution Process effectively.
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