Tribunal Allows Exclusion of Periods in Insolvency Resolution Process

The Appellate Tribunal partially allowed the exclusion of specific periods sought by the Resolution Professional in a corporate insolvency resolution process. Despite opposition from the Operational Creditor, the Tribunal directed the exclusion of certain periods for counting the 270 days, emphasizing the need for immediate steps to be taken by the Resolution Professional and Committee of Creditors to advance the resolution process. The appeal was allowed, with instructions for prompt compliance with the law in further proceedings.

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Issues:
1. Exclusion of period for calculating total period of corporate insolvency resolution process.
2. Challenge to exclusion of further period for appointment of Resolution Professional.
3. Pending resolution plans and exclusion of period for consideration.
4. Opposing exclusion leading to liquidation of Corporate Debtor.

Issue 1: Exclusion of period for calculating total period of corporate insolvency resolution process
The Resolution Professional of a company filed an application seeking exclusion of the period between the date of order and communication of the order to the Interim Resolution Professional for calculating the total period of 270 days of corporate insolvency resolution process. The Adjudicating Authority noted the admission of a petition by an Operational Creditor and certified copy of the order issued. Referring to a previous decision, the Appellate Tribunal partially allowed the exclusion of a specific period.

Issue 2: Challenge to exclusion of further period for appointment of Resolution Professional
The appellant challenged the order excluding a period between the appointment of a new Resolution Professional and the communication of the decision. The appellant was appointed as Resolution Professional after a series of events, and the exclusion of this period was contested. The Bank of India and the suspended Board of Directors supported the exclusion due to pending resolution plans, while the Operational Creditor opposed it fearing liquidation of the Corporate Debtor.

Issue 3: Pending resolution plans and exclusion of period for consideration
The lead Bank of the Committee of Creditors mentioned pending resolution plans as a reason to support the exclusion of a specific period for their consideration. The decision was also backed by the suspended Board of Directors. However, the Operational Creditor opposed the exclusion, highlighting the risk of liquidation if the exclusion was not allowed.

Issue 4: Opposing exclusion leading to liquidation of Corporate Debtor
The Operational Creditor opposed the exclusion of the period, emphasizing the possibility of liquidation if the exclusion was granted. Despite the opposition, the Appellate Tribunal considered the circumstances and directed the exclusion of the period for counting the 270 days, instructing immediate steps to be taken by the Resolution Professional and the Committee of Creditors to move forward with the resolution process.

In conclusion, the Appellate Tribunal allowed the appeal, directing the exclusion of the specified period and providing instructions for further proceedings to be carried out promptly in accordance with the law.

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