Tribunal Grants CIRP Extension, Orders Electricity Dues Payment

The National Company Law Tribunal, New Delhi Court-V approved an extension of the Corporate Insolvency Resolution Process (CIRP) period by 60 days as requested by the Committee of Creditors (CoC). Additionally, the Tribunal excluded the period of CIRP due to the lockdown, extending it by 90 days beyond the initial 180 days. The Tribunal directed the Resolution Professional (RP) to pay a portion of outstanding electricity dues within a week for the restoration of electricity connection. Furthermore, an application for payment of expenses was dismissed as infructuous. The Tribunal's decisions were based on careful consideration of submissions, CoC resolutions, and relevant provisions of the Insolvency and Bankruptcy Code (IBC).

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Issues:
1. Extension of the period of CIRP by 60 days.
2. Approval of extension and exclusion of period of CIRP due to lockdown.
3. Payment of outstanding electricity dues.
4. Dismissal of an application as infructuous.

Extension of CIRP Period:
In an application seeking an extension of the CIRP period by 60 days, the CoC had approved the extension. The Tribunal, after reviewing the application and the CoC resolution, noted the approval and extended the CIRP period by 60 days from the expiry of the initial 270 days under Section 12 Sub-Section 3 of the IBC. The Tribunal disposed of the application accordingly.

Approval of Extension and Exclusion of CIRP Period Due to Lockdown:
Another application requested the exclusion of the period of CIRP due to the lockdown imposed by the Central Government/State Government. The CoC had approved an extension of 90 days beyond the initial 180 days, with a 96.4% vote. The Tribunal, considering similar exclusions in other cases, excluded the period from 25.03.2020 to 30.06.2020, totaling 98 days, and approved the additional 90-day extension. The application was disposed of based on these decisions.

Payment of Outstanding Electricity Dues:
Regarding outstanding electricity dues, the respondent informed the Tribunal of unpaid dues totaling &8377;7,18,647 post-CIRP initiation. The RP cited insufficient funds as the reason for non-payment. The Tribunal directed the RP to pay &8377;1,50,000 within a week, with the condition that upon payment, the respondent must restore the electricity connection. The matter was listed for further review.

Dismissal of Application as Infructuous:
In a separate matter, an application was filed for the payment of expenses, but it was deemed infructuous as the original application had already been disposed of. Consequently, the Tribunal dismissed the application as infructuous.

This judgment by the National Company Law Tribunal, New Delhi Court-V addressed various issues such as extending the CIRP period, approving extensions due to lockdown, addressing outstanding dues, and dismissing an application as infructuous. The Tribunal carefully considered the submissions, CoC resolutions, and relevant provisions of the IBC to make informed decisions on each issue presented before it.

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