Extension Granted for Corporate Insolvency Resolution Process Deadline The Tribunal granted an extension of 30 days for the Corporate Insolvency Resolution Process, starting from 13.09.2020, to be completed by 12.10.2020. ...
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Extension Granted for Corporate Insolvency Resolution Process Deadline
The Tribunal granted an extension of 30 days for the Corporate Insolvency Resolution Process, starting from 13.09.2020, to be completed by 12.10.2020. This extension was requested by the Resolution Professional and approved after the 6th Committee of Creditors meeting passed a resolution seeking the extension due to delays caused by incomplete audit reports for the years 2017, 2018, and 2019. The application for extension under Section 40(2) of the CIRP Regulation and Section 12(2) of the Insolvency and Bankruptcy Code, 2016 was disposed of accordingly.
Issues Involved: 1. Application for extension of time period of Corporate Insolvency Resolution Process under Section 40(2) of CIRP Regulation and Section 12(2) of IBC 2016.
Analysis: 1. The Application was filed by the Resolution Professional seeking an extension of the time period of the Corporate Insolvency Resolution Process (CIRP) under Section 40(2) of the CIRP Regulation and Section 12(2) of the Insolvency and Bankruptcy Code, 2016 (IBC).
2. The CIR Process was initiated by South Indian Bank Ltd (Financial Creditor) against the Corporate Debtor M/s. Churakulam Tea Estate Private Limited, and the Resolution Professional appointed was directed to take necessary actions as per the relevant provisions of the Insolvency and Bankruptcy Board of India. The audit report of the Corporate Debtor was available only up to 31.3.2016, causing delays in completing the CIR Process due to audits for the years 2017, 2018, and 2019. The 180-day CIRP period had already expired on 13.9.2020, and the Resolution plan was under consideration by the Committee of Creditors (COC).
3. The Resolution Professional informed the Tribunal that the 6th COC meeting held on 15.09.2020 unanimously passed a resolution to seek an extension of 30 days from 13.9.2020 to complete the CIR Process.
4. After hearing the Resolution Professional and reviewing the relevant documents, including the minutes of the 6th COC meeting, the Tribunal granted the extension as requested. The Tribunal allowed the extension of the Corporate Insolvency Resolution Process for 30 days starting from 13.09.2020, directing the Resolution Professional to complete the process by 12.10.2020. The application for extension was disposed of accordingly.
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