2022 (2) TMI 1307 - Tri - Insolvency and Bankruptcy

Exclusion of COVID-19 days, early hearing date, and dissolution order granted in SBQ Steels case

The National Company Law Tribunal, Chennai, allowed the exclusion of 186 days from the Liquidation period due to COVID-19 lockdown, fixed an early hearing ... Seeking exclusion of period of 186 days from the Liquidation period in relation to the timelines of Liquidation Process of the Corporate Debtor - seeking to fix an early date for hearing the Applications - dissolution of SBQ Steels Ltd. under section 54 of the Code - HELD THAT:- It is seen that the Corporate Debtor has been completely liquidated and in the said circumstances as averred and as prayed for by the Applicant that an order for dissolution is required to be passed by this Adjudicating Authority under Section 54 of the IBC, 2016. The dissolution of the Corporate Debtor viz., M/s. SBQ Steels Limited is ordered and the Liquidator is directed to forward a copy of this Order to the RoC concerned - application allowed. Issues:1. Exclusion of a period from the Liquidation process timeline.2. Fixing an early date for hearing pending applications.3. Order of dissolution of a company under the Insolvency and Bankruptcy Code.Issue 1: Exclusion of a period from the Liquidation process timelineThe Applicant sought to exclude 186 days from the Liquidation period due to the impact of COVID-19 and nationwide lockdown. The Applicant relied on Regulation 47A of the Liquidation Regulations to request this exclusion. The Tribunal considered the Order of Liquidation issued on 30.01.2019, which marked the end of the two-year Liquidation period on 18.02.2021. Due to the lockdown imposed from 24.03.2020 to 30.09.2020, the Tribunal allowed the exclusion of 186 days from the Liquidation Period.Issue 2: Fixing an early date for hearing pending applicationsThe Applicant requested an early date for hearing pending applications, including MA/552/2018, MA/628/2019, MA/631/2018, and MA/131/2020. These applications involved substantial sums to be returned to the Corporate Debtor. The Tribunal directed the Applicant to forward a copy of the dissolution order to the authority with which the corporate debtor is registered within seven days from the date of the order.Issue 3: Order of dissolution of a company under the Insolvency and Bankruptcy CodeThe Tribunal noted that the Corporate Debtor, SBQ Steels Ltd., had been completely liquidated as per the final report and Compliance Certificate filed by the Applicant. As per Section 54 of the Insolvency and Bankruptcy Code, the Tribunal ordered the dissolution of the Corporate Debtor. The Liquidator was directed to forward a copy of the dissolution order to the concerned RoC and IBBI within seven days from the date of the order. Consequently, the Tribunal allowed the application for dissolution of the Corporate Debtor.This detailed analysis of the judgment from the National Company Law Tribunal, Chennai, highlights the key issues addressed, the legal provisions applied, and the final orders issued by the Tribunal.