Extension of CIRP period granted by NCLT

The National Company Law Tribunal, Mumbai Bench granted an extension of the Corporate Insolvency Resolution Process (CIRP) period by 90 days, as sought by the Resolution Professional of the Corporate Debtor. The extension was based on a resolution passed by the Committee of Creditors with 99.214% voting, in compliance with the Insolvency and Bankruptcy Code. Consequently, the CIRP period was extended, and the CIRP was scheduled to conclude on a specified date.

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Issues: Application for extension of CIRP period under Section 12(3) of the Insolvency and Bankruptcy Code, 2016.

In the judgment delivered by the National Company Law Tribunal, Mumbai Bench, the Resolution Professional of the Corporate Debtor filed an Application seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period by 90 days, as allowed under Section 12(3) of the Insolvency and Bankruptcy Code, 2016. The Tribunal had previously admitted the petition and imposed a Moratorium against the Corporate Debtor, appointing the Resolution Professional as the Interim Resolution Professional. The Moratorium period was set to end on 27.10.2019 after 180 days. The Resolution Professional sought an extension of the CIRP period from this date. The Tribunal granted the extension based on a resolution passed by the Committee of Creditors (COC) with 99.214% voting, in compliance with Section 12(2) of the Code. Consequently, the CIRP period was extended by 90 days, and the CIRP was scheduled to conclude on 24.01.2020. The Miscellaneous Application was allowed and disposed of accordingly.

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