Tribunal Grants Extension of Resolution Plan Implementation Due to COVID-19 Impact

The Tribunal allowed the application under Section 60(5) of the IBC, 2016, due to the impact of COVID-19, extending the implementation schedule of the Resolution Plan by six months. Despite initial jurisdictional concerns, the Tribunal recognized the pandemic as a valid reason for the extension, referencing decisions from higher courts. The application was disposed of without costs, with directions for service of copies via e-mail to the parties.

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Issues Involved:
1. Termination of Power Purchase Agreement (PPA) by GRIDCO Ltd.
2. Implementation of the Resolution Plan.
3. Delay in execution due to non-cooperation from OPTCL and GRIDCO Ltd.
4. Impact of COVID-19 pandemic on the implementation schedule.
5. Jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016.

Issue-wise Detailed Analysis:

1. Termination of Power Purchase Agreement (PPA) by GRIDCO Ltd.:
The applicant, Chairman of the Monitoring Committee of Alex Green Energy Pvt. Ltd., challenged the termination of the PPA by GRIDCO Ltd. during the CIRP period. The Tribunal had previously set aside GRIDCO Ltd.'s decision, directing the restoration of the PPA as it violated the moratorium declared by the Adjudicating Authority.

2. Implementation of the Resolution Plan:
The Resolution Plan was approved on 25.11.2019, with commitments including the payment of Rs. 11.07 Crores to stakeholders and the operationalization of the plant within six months. The applicant detailed the steps taken towards renovation and maintenance, including the investment of approximately Rs. 1 crore for essential equipment and infrastructure.

3. Delay in Execution Due to Non-cooperation from OPTCL and GRIDCO Ltd.:
Despite repeated requests, OPTCL, a subsidiary of GRIDCO Ltd., did not restore the electricity connection necessary for plant operations. The applicant highlighted various correspondences and efforts to secure the connection, which were critical for testing and operationalizing the plant's machinery.

4. Impact of COVID-19 Pandemic on the Implementation Schedule:
The nationwide lockdown due to COVID-19 from 22nd March 2020 to 31st May 2020 severely impacted the implementation schedule. The applicant sought an extension of six months, from 24.05.2020 to 24.11.2020, citing the pandemic as a genuine cause of delay and emphasizing the hardships and prejudices faced by the Corporate Debtor and stakeholders.

5. Jurisdiction Under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016:
The Tribunal initially questioned the applicability of Section 60(5) for the extension request. However, considering the unprecedented COVID-19 situation and referencing decisions from the Hon'ble Supreme Court, NCLAT, and NCLT Chandigarh Bench, the Tribunal acknowledged the pandemic as a valid reason for extending timelines.

Conclusion:
The Tribunal, recognizing the special circumstances due to COVID-19, allowed the application under Section 60(5) of the IBC, 2016. The implementation schedule of the Resolution Plan was extended for another six months from 24.05.2020 to 24.11.2020, despite the initial reservations about the jurisdictional scope of Section 60(5). The application was disposed of with no orders as to costs, and the Registry was directed to serve copies to the parties via e-mail.

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