Tribunal Grants Exclusion of Days in Insolvency Process to Prevent Liquidation

The Tribunal allowed the exclusion of 89 days for counting the 270-day period in the Corporate Insolvency Resolution Process. This exclusion aimed to facilitate the success of the resolution process and prevent the liquidation of the Corporate Debtor. The Resolution Professional and Committee of Creditors were granted additional time to conclude the process, with the Committee empowered to decide on issuing further Information Memoranda or considering already submitted Resolution Plans. The appeals were disposed of with these directions, leaving the decision-making process to the Committee of Creditors.

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Issues:
1. Appeal by Operational Creditor and Director against a common order passed by the Adjudicating Authority.
2. Replacement of Interim Resolution Professional and delay in the Corporate Insolvency Resolution Process.
3. Exclusion of certain period for counting the statutory period.
4. Resolution plans consideration and Committee of Creditors decision-making process.

Analysis:
1. The appeals were filed by an Operational Creditor and a Director against a common order passed by the Adjudicating Authority, where only three days were excluded for counting the period of 270 days in the Corporate Insolvency Resolution Process.

2. The Committee of Creditors had resolved to replace the Interim Resolution Professional, causing a delay in the process. The subsequent Resolution Professional joined after a delay, affecting the preparation of the Information Memorandum and the consideration of resolution plans. The Appellants argued that approximately 89 days of delay should be excluded from the total period.

3. The Resolution Professional supported the argument for excluding the delay period to allow for the calling of more resolution plans. The Tribunal, after hearing all parties, decided to exclude the 89 days of delay caused by the pendency of the application for the replacement of the Interim Resolution Professional. This exclusion was to ensure the success of the resolution process and prevent the liquidation of the Corporate Debtor.

4. The Tribunal modified the impugned order to allow the exclusion of 89 days for counting the 270-day period of the Corporate Insolvency Resolution Process. The Resolution Professional and the Committee of Creditors were granted this additional time to conclude the process. The Committee was given the authority to decide on issuing further Information Memoranda or considering Resolution Plans already submitted. The appeals were disposed of with these directions, leaving the decision-making process to the Committee of Creditors.

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