Exclusion of delay in CIRP computation where the resolution professional received the admission order later than its passing.

A delay between the insolvency admission order and receipt of its copy by the resolution professional may justify exclusion of that interval from the corporate insolvency resolution process period where the professional could not take charge or perform the statutory duties of asset collection and control. An application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 sought exclusion of 2 days on the ground that the order was passed on 09.08.2018 but received only on 11.08.2018. The request was supported by the committee of creditors and was treated as consistent with exclusion of time lost due to intervening delay.

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Issues: Whether 2 days could be excluded from the statutory period of the corporate insolvency resolution process on account of the delay between the admission order and the receipt of its copy by the resolution professional.

Analysis: The application was moved under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The admitted position was that the order initiating insolvency was passed on 09.08.2018, but its copy was received only on 11.08.2018, during which interval the resolution professional could not take charge or perform the duties required for collection and control of the corporate debtor's assets. The request for exclusion was supported by the committee of creditors and was consistent with the principle that time lost due to such intervening delay may be excluded from computation of the CIRP period.

Conclusion: The request for exclusion of 2 days from the CIRP period was allowed.

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