Tribunal excludes days, modifies resolution process deadline, expunges adverse observations

The Tribunal determined that the period for Corporate Insolvency Resolution Process should exclude certain days based on the precedent set in a previous case. As the Resolution Professional was informed late and took charge after a delay, the Tribunal directed the exclusion of these days from the calculation. Consequently, the Adjudicating Authority's order was modified to set a new deadline for completing the resolution process, expunging adverse observations against the Resolution Professional. The appeal was disposed of with these directions and observations.

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Issues:
Calculation of period for Corporate Insolvency Resolution Process

Analysis:
The main issue in this judgment revolves around determining how the period of 180 days for Corporate Insolvency Resolution Process should be counted. Specifically, the question arises whether the count should start from the date of admission as per the provisions of the Code or from the date of knowledge of the Resolution Professional. The Tribunal referred to a previous case, "Quinn Logistics India Pvt. Ltd. vs. Mack Soft Tech Pvt. Ltd.," where it was established that certain periods can be excluded for counting the total period of 270 days in unforeseen circumstances. These circumstances include scenarios like if the insolvency resolution process is stayed by a court, if no Resolution Professional is functioning, or if there is a delay between the admission order and the Resolution Professional taking charge.

In the present case, it was noted that the Resolution Professional was informed 30 days after the application was admitted, and he took charge after 30 days of admission. Following the precedent set in the Quinn Logistics case, the Tribunal directed the Adjudicating Authority to exclude these 30 days from the calculation of the insolvency resolution process period, allowing the Resolution Professional to complete the process by a specified date.

Consequently, the impugned order passed by the Adjudicating Authority was modified to exclude the 30-day period and set a new deadline for completing the resolution process. The adverse observations made against the Resolution Professional were expunged and set aside. The appeal was disposed of with the aforementioned directions and observations.

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