CIRP time exclusion granted for litigation delay, non-cooperation, and pending resolution steps affecting progress.

Time could be excluded from the CIRP period where litigation, suspended management non-cooperation, pending interlocutory matters, and delay in appointing the resolution professional had materially slowed progress. The application relied on Section 12(2) of the Insolvency and Bankruptcy Code, the Tribunal's residual powers, and the CIRP Regulations and Rules, with the delay traced to a stay on constitution of the Committee of Creditors, unresolved applications affecting early CoC meetings, and remaining work such as special audit and evaluation of expressions of interest. In these circumstances, the Tribunal found limited exclusion necessary to allow completion of the resolution process within a workable period and granted exclusion of 60 days.

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Issues: Whether 60 days deserved exclusion from the Corporate Insolvency Resolution Process period on account of litigation-related delay, non-cooperation of the suspended management, and pending steps necessary for completion of the resolution process.

Analysis: The application sought exclusion of time under Section 12(2) of the Insolvency and Bankruptcy Code, 2016, supported by the Tribunal's residual powers and the relevant CIRP Regulations and Rules. The delay was attributed to several identifiable causes, including a stay relating to constitution of the Committee of Creditors, non-cooperation by the suspended directors, pendency and disposal of interlocutory applications affecting early CoC meetings, and time consumed in resolving the issue of appointment of the Resolution Professional. The Tribunal also noted that special audit work and evaluation of expressions of interest were still pending and that the cumulative loss of time justified limited exclusion in order to enable completion of the CIRP within a workable period.

Conclusion: Exclusion of 60 days from the CIRP period was justified and was granted.

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