Tribunal Grants Exclusion of Time Periods in CIRP Timeline Due to IRP Replacement & Covid-19 Lockdown

The Tribunal allowed the urgent hearing request for IA No. 306/2020 and excluded the periods from 30.11.2019 to 25.02.2020 and from 25.03.2020 to 31.07.2020 from the CIRP timeline due to the replacement of the Interim Resolution Professional (IRP) and the Covid-19 lockdown. Citing legal precedents and regulations, the Tribunal granted the exclusion based on the lack of substantial progress during these periods. IA No. 306/2020 was disposed of accordingly, with the order to be provided to the applicant's counsel for compliance.

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Issues:
- Urgent hearing sought for IA No. 306/2020
- Exclusion of time from CIRP period due to replacement of IRP and Covid-19 lockdown

Analysis:
1. Urgent Hearing Request:
- IA No. 305/2020 filed for urgent hearing of IA No. 306/2020 was allowed by the Tribunal, and IA No. 305/2020 was disposed of accordingly.

2. Exclusion of Time from CIRP Period:
- IA No. 306/2020 was filed by the Resolution Professional seeking exclusion of time from the CIRP period due to the replacement of the Interim Resolution Professional (IRP) and the Covid-19 lockdown.
- The initial IRP failed to perform duties, leading to a delay in conducting COC meetings for his replacement.
- Replacement of IRP was done on 25.02.2020, and lockdown due to Covid-19 started from 25.03.2020.
- The applicant requested exclusion of the period from 30.11.2019 to 25.02.2020 and from 25.03.2020 to 31.07.2020 from the CIRP period.
- The Tribunal noted that no substantial work was done in the CIRP till 25.02.2020 and due to the lockdown from 25.03.2020 to 31.07.2020, no significant progress could be made in the proceedings.
- Referring to orders by the Hon'ble Supreme Court and NCLAT, and regulations by the IBBI, the Tribunal excluded the mentioned periods from the CIRP timeline.

3. Legal Precedents and Regulations:
- The Tribunal cited orders by the Hon'ble Supreme Court and NCLAT regarding the extension of limitation periods due to the Covid-19 situation.
- The IBBI issued regulations excluding the lockdown period from the timeline for activities related to insolvency resolution and liquidation processes.
- Based on these legal precedents and regulations, the Tribunal excluded the specific periods from the CIRP timeline as requested in IA No. 306/2020.

4. Disposition:
- IA No. 306/2020 was disposed of by the Tribunal in light of the circumstances, legal precedents, and regulations mentioned.
- The order was to be supplied to the applicant's counsel by the Registry for compliance and further action.

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