Public upload of insolvency orders defeats non-communication claims, while Covid-19 lockdown time may be excluded from CIRP.

Where an insolvency admission order is pronounced in open court and uploaded on the Tribunal's website, non-receipt of separate intimation does not justify exclusion of the entire intervening period from CIRP or retrospective shifting of the commencement date, because the order is treated as publicly available and the professional is expected to monitor the case after consenting to act. However, the Covid-19 lockdown period from 25.03.2020 to 30.06.2020 was excluded from the CIRP period under Regulation 40C of the Corporate Persons Insolvency Resolution Process Regulations, and the resolution process was directed to continue accordingly.

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Issues: (i) Whether the period of 322 days between admission of the insolvency petition and the date on which the Interim Resolution Professional came to know of his appointment could be excluded and 16.12.2020 declared as the date of commencement of the corporate insolvency resolution process; (ii) whether the lockdown period from 25.03.2020 to 30.06.2020 could be excluded from the corporate insolvency resolution process period.

Issue (i): Whether the period of 322 days between admission of the insolvency petition and the date on which the Interim Resolution Professional came to know of his appointment could be excluded and 16.12.2020 declared as the date of commencement of the corporate insolvency resolution process.

Analysis: The order admitting the insolvency petition had been pronounced in open court and uploaded on the Tribunal's website the next day, making it available in the public domain. The plea of non-communication was rejected in view of the record showing pronouncement and upload. The Interim Resolution Professional was also expected to keep track of the case after giving consent to act, and the amended time limit under Section 12 of the Insolvency and Bankruptcy Code, 2016 did not permit the claimed exclusion on these facts.

Conclusion: The request to exclude 322 days and to declare 16.12.2020 as the commencement date of CIRP was rejected.

Issue (ii): Whether the lockdown period from 25.03.2020 to 30.06.2020 could be excluded from the corporate insolvency resolution process period.

Analysis: In view of Regulation 40C of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2020, the lockdown period imposed by the Central Government in the wake of Covid-19 was directed to be excluded from the CIRP period to facilitate continuation of the process.

Conclusion: The lockdown period from 25.03.2020 to 30.06.2020 was excluded from the CIRP period.

Final Conclusion: The application was only partly accepted: the large retrospective exclusion sought by the Interim Resolution Professional was declined, but limited relief was granted by excluding the Covid-19 lockdown period and directing expedition of the resolution process, with the matter of the IRP's conduct referred to the IBBI.

Ratio Decidendi: Where the insolvency order has been pronounced and uploaded on the Tribunal's website, non-receipt of separate intimation does not justify exclusion of the entire intervening period from CIRP, though the lockdown period may be excluded under the applicable regulatory relaxation.

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