Extension granted for Resolution Plan approval in Indu Projects Limited insolvency case to meet SC timeline. The Adjudicating Authority granted the exclusion of 7 days from the CIRP end date for approving the Resolution Plan in the case involving M/s. Indu ...
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Extension granted for Resolution Plan approval in Indu Projects Limited insolvency case to meet SC timeline.
The Adjudicating Authority granted the exclusion of 7 days from the CIRP end date for approving the Resolution Plan in the case involving M/s. Indu Projects Limited. This decision was based on the Supreme Court's guidance to complete the insolvency resolution process within 330 days, allowing for extensions in exceptional cases. The exclusion was aimed at facilitating the resolution process and benefiting all stakeholders, leading to the approval of the request and an extended period for completing the CIRP process starting from 07.02.2020.
Issues: Application under section 60(5) of the Insolvency and Bankruptcy Code seeking exclusion of 7 days from CIRP end date for approving Resolution Plan.
Analysis: The Application was filed seeking an order to exclude 7 days from the CIRP end date for approving the Resolution Plan. The history of the case revealed the appointment of the IRP and RP, along with various orders passed by the Adjudicating Authority. The CoC had previously sought exclusions of days from the CIRP period, which were approved by the Authority. The current request for exclusion of 7 days arose due to delays caused by external factors such as bank strikes and holidays, affecting the CoC's ability to finalize the Resolution Plan.
The Adjudicating Authority considered the facts, submissions, and the stage of the CIRP in line with the guidance from the Hon'ble Supreme Court's judgment in Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta & Ors. The Supreme Court's ruling emphasized completing the insolvency resolution process within 330 days but allowed for extensions in exceptional cases where stakeholders' interests were paramount. In this context, the Authority noted that a short period remained for completing the CIRP and decided to grant the exclusion of 7 days to facilitate the resolution process instead of opting for liquidation.
The decision to exclude the additional 7 days was made to benefit all stakeholders involved in the CIRP of the Corporate Debtor, M/s. Indu Projects Limited. The Authority acknowledged the efforts made by the RP and the current stage of the CIRP, leading to the approval of the exclusion request. Consequently, the Application under IA No. 126 of 2020 was disposed of, allowing the applicant an extended period for completing the CIRP process of the Corporate Debtor starting from 07.02.2020.
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