Court Directs Electronic Proceedings Amidst COVID-19 Impact: Urgent Relief via Email & Video Conferencing

The court acknowledged the impact of COVID-19 lockdown on legal proceedings and directed the 3rd respondent to entertain the appeal and interlocutory relief applications through electronic means. Recognizing the urgency, the court instructed expedited processing via email and video conferencing. The Insolvency Resolution Professional was directed to delay Committee of Creditors' decisions for three weeks. The court's general direction aimed to streamline electronic filing processes, avoiding repetitive petitions. The Civil Revision Petition was disposed of without costs, emphasizing timely resolution of the petitioner's appeal under the Insolvency and Bankruptcy Code amidst pandemic challenges.

---

---

Issues:
Challenge to order passed by National Company Law Tribunal under Section 7 of IBC, Maintainability of appeal under Section 61 of IBC, Urgency due to COVID-19 lockdown for filing appeal with NCLAT, Direction for 3rd respondent to entertain appeal through E-mail, Interim orders for Insolvency Resolution Professional, Judicial notice of COVID-19 impact on court proceedings.

Analysis:
The petitioner challenged the order passed by the National Company Law Tribunal under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating corporate insolvency resolution proceedings. The petitioner filed an appeal under Section 61 of the IBC, but the Registry raised a Maintainability Note citing the availability of alternative remedies. The petitioner, through Senior Counsel, highlighted the urgency of the situation due to the COVID-19 lockdown, preventing the physical filing of the appeal with the National Company Law Appellate Tribunal (NCLAT). The Insolvency Resolution Professional appointed following the order was also taking steps to constitute a Committee of Creditors. The court, after considering submissions from both sides, acknowledged the impact of the lockdown on court proceedings and directed the 3rd respondent to entertain the appeal and application for interlocutory relief through E-mail or other electronic modes.

The court recognized the exceptional circumstances caused by the COVID-19 lockdown, leading to the adoption of E-mail and Video Conferencing for court proceedings. In response to the urgency presented by the petitioner's counsel, the court issued a specific direction to the 3rd respondent to expedite the appeal process through electronic means and prioritize the interlocutory application through Video Conferencing. The court also instructed the Insolvency Resolution Professional to defer decisions regarding the constitution of a Committee of Creditors and management takeover for a period of three weeks.

The interim direction provided by the court for entertaining appeals through E-mail or electronic modes was deemed a general direction for the 3rd respondent to avoid the need for similar petitions to be filed before the court's registry. The Civil Revision Petition was disposed of at the SR stage without costs, and the connected miscellaneous petitions were closed. The court's decision aimed to address the challenges posed by the COVID-19 lockdown on legal proceedings while ensuring the timely resolution of the petitioner's appeal under the IBC.

---