2020 (3) TMI 1290 - AT - Insolvency and Bankruptcy

Extension of Resolution Process under Insolvency Code due to COVID-19 lockdown

Punjab National Bank Versus Kudos Chemie Ltd. and Ors.

The National Company Law Appellate Tribunal extended the period for the 'Resolution Process' under the Insolvency and Bankruptcy Code, 2016 by excluding ... Filing of Appeals/ cases - seeking continuation of interim direction / stay order passed in all competition Appeals - complete lockdown situation on the spread of pandemic novel CORONAVIRUS disease - HELD THAT:- Upon requests for urgent listing of cases having been made telephonically to Registrar of this Appellate Tribunal from various persons, who were unable to physically file the same on account of complete lockdown declared by Government with effect from 25th March, 2020, we take suo moto cognizance of the unprecedented situation arising out of spread of COVID19 virus declared a pandemic. Having regard to the hardships being faced by various stakeholders as also the legal fraternity, which go beyond filing of Appeals/ cases, which has already been taken care of by the Hon’ble Apex Court by extending the period of limitation with effect from 15th March, 2020 till further order/s in terms of order IN RE : COGNIZANCE FOR EXTENSION OF LIMITATION [2020 (5) TMI 418 - SC ORDER] inasmuch as certain steps required to be taken by various Authorities or to comply with the various provisions under the Competition Act, 2002, this Appellate Tribunal do hereby order as follows: - (1) That interim direction / stay order passed in all competition Appeals shall continue until further order. (2) In the event of expiry of period of Fixed Deposits, the concerned bank shall renew the same for further period of six months. Issues:1. Extension of period for 'Resolution Process' under the Insolvency and Bankruptcy Code, 2016 due to COVID-19 lockdown.2. Continuation of interim orders/stay orders passed by the Appellate Tribunal under the Insolvency and Bankruptcy Code, 2016.3. Continuation of interim orders/stay orders passed by the Appellate Tribunal under the Companies Act, 2013.4. Extension of interim directions/stay orders in competition Appeals due to COVID-19 lockdown.5. Renewal of Fixed Deposits by concerned banks for further periods in competition Appeals.Extension of Period for 'Resolution Process' under the Insolvency and Bankruptcy Code, 2016:The National Company Law Appellate Tribunal, in response to the COVID-19 lockdown situation, decided to exclude the lockdown period for the purpose of counting the period for the 'Resolution Process' under Section 12 of the Insolvency and Bankruptcy Code, 2016. This decision applies to cases where the 'Corporate Insolvency Resolution Process' has been initiated and is pending before any Bench of the National Company Law Tribunal or in Appeal before the Appellate Tribunal. The Tribunal invoked Rule 11 of the National Company Law Appellate Tribunal Rules, 2016 and a previous decision in the case of 'Quinn Logistics India Pvt. Ltd. vs. Mack Soft Tech Pvt. Ltd.' to make this order.Continuation of Interim Orders/Stay Orders under the Insolvency and Bankruptcy Code, 2016:The Appellate Tribunal ordered that any interim order/stay order passed by the Tribunal in Appeals under the Insolvency and Bankruptcy Code, 2016 shall continue until the next date of hearing, which will be notified later. This decision aims to ensure the continuity and stability of legal proceedings during the lockdown period, considering the challenges faced by stakeholders and the legal fraternity.Continuation of Interim Orders/Stay Orders under the Companies Act, 2013:In response to the COVID-19 lockdown, the Appellate Tribunal decided that any interim order/stay order passed by the Tribunal in Appeals under the Companies Act, 2013 shall also continue until the next date of hearing, which will be communicated later. This decision aligns with the efforts to mitigate the impact of the lockdown on legal proceedings and stakeholders.Extension of Interim Directions/Stay Orders in Competition Appeals:For cases falling under the Competition Act, 2002, the Appellate Tribunal ordered that interim directions/stay orders passed in all competition Appeals shall continue until further notice. Additionally, in cases where the period of Fixed Deposits is expiring, the concerned bank is directed to renew the same for a further period of six months. These measures aim to provide stability and continuity in legal matters related to competition law during the lockdown period.---