Tribunal Grants Relief for Resolution Applicant Impacted by COVID-19 Lockdown

The Tribunal allowed the urgent hearing of IA No. 184/2020 in CP (IB) No. 30/Chd/Pb/2017, considering the circumstances and in the interest of justice. The successful Resolution Applicant sought relief in IA No. 185/2020 due to the impact of the COVID-19 lockdown, requesting flexibility in payments. The lockdown significantly affected the Resolution Plan implementation, leading to the exclusion of the entire lockdown period from compliance requirements. The Tribunal addressed the challenges faced by the Applicant and made necessary directions, considering the special provisions introduced during the lockdown by relevant authorities.

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Issues involved:
1. Urgent hearing of IA No. 184/2020 in CP (IB) No. 30/Chd/Pb/2017.
2. Relief sought by the successful Resolution Applicant in IA No. 185/2020 regarding payments under the approved Resolution Plan.
3. Impact of COVID-19 lockdown on the implementation of the Resolution Plan.

Issue 1: Urgent hearing of IA No. 184/2020
The Tribunal allowed the instant IA filed for seeking urgent hearing of IA No. 185/2020 in CP (IB) No. 30/Chd/Pb/2017, considering the circumstances and in the interest of justice. IA No. 184/2020 was disposed of after hearing the parties.

Issue 2: Relief sought by the successful Resolution Applicant in IA No. 185/2020
The successful Resolution Applicant, as per the approved Resolution Plan, sought relief in IA No. 185/2020 due to the impact of the COVID-19 lockdown. The Applicant requested to exclude the lockdown period from the due dates of payments and allow flexibility in making payments. The Resolution Plan required payments to be made within specific timelines, and due to the lockdown, the Applicant faced challenges in opening an Escrow Account and arranging funds as planned. The Monitoring Committee was updated about the situation, and the Applicant sought necessary directions from the Tribunal.

Issue 3: Impact of COVID-19 lockdown on the implementation of the Resolution Plan
The lockdown due to the COVID-19 pandemic had a significant impact on the implementation of the Resolution Plan. The Government of India imposed a nationwide lockdown, affecting normal operations and movement. The Hon'ble Supreme Court and the National Company Law Appellate Tribunal issued orders regarding the extension of limitation periods and exclusions of lockdown periods for legal proceedings. The Insolvency and Bankruptcy Board of India also introduced special provisions related to timelines for corporate insolvency resolution processes during the lockdown. Considering these factors and the challenges faced by the Resolution Applicant, the Tribunal excluded the entire lockdown period from the compliance requirements of the Resolution Plan. IA No. 185/2020 was disposed of accordingly.

This detailed analysis of the judgment covers the issues involved, the relief sought by the Resolution Applicant, and the impact of the COVID-19 lockdown on the Resolution Plan implementation, providing a comprehensive overview of the legal proceedings and decisions made by the Tribunal.

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