Inherent power may extend time for resolution plan approval filing where delay is not attributable and liquidation would follow.

In an exceptional case under the Insolvency and Bankruptcy Code, the Appellate Tribunal may invoke its inherent power under Rule 11 to extend time for filing an application for approval of a resolution plan under Section 31 when the delay is not attributable to the Resolution Professional. Where the Committee of Creditors has approved the plan within the extended timeline and refusal of additional time would frustrate the insolvency resolution process and risk liquidation, further time may be granted to allow the application to be filed and considered on merits. The text states that a 10-day extension was justified to prevent injustice and preserve the resolution process.

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Issues: Whether the Appellate Tribunal should extend time under its inherent power to permit filing of the application for approval of the resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016, where the approved resolution plan could not be placed before the Adjudicating Authority within the stipulated period.

Analysis: The resolution plan had been approved by the Committee of Creditors within the extended timeline, but only one day remained for the Resolution Professional to complete the statutory formalities and file the application before the Adjudicating Authority. The delay was not attributable to any lack of diligence on the part of the Resolution Professional. The matter was treated as an exceptional case warranting exercise of the Tribunal's inherent power under Rule 11 of the National Company Law Appellate Tribunal Rules, since refusal of further time would defeat the object of the insolvency process and risk liquidation to the detriment of stakeholders.

Conclusion: The Tribunal held that further extension of 10 days was justified and that the application under Section 31 could be filed and considered on merits.

Final Conclusion: The appeal succeeded, the impugned order was set aside, and time for completion of the insolvency resolution step was extended so that the approval application could be considered in accordance with law.

Ratio Decidendi: In an exceptional case where delay in moving the approval application is not attributable to the Resolution Professional and refusal of time would frustrate the insolvency resolution process, the Appellate Tribunal may invoke its inherent powers to extend time beyond the ordinary limit to prevent injustice and avoid liquidation.

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