Tribunal extends liquidation deadline by 6 months due to COVID-19 impact The Tribunal granted the applicant's request to exclude the lockdown period from the liquidation process timeframe, extending the deadline by six months ...
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Tribunal extends liquidation deadline by 6 months due to COVID-19 impact
The Tribunal granted the applicant's request to exclude the lockdown period from the liquidation process timeframe, extending the deadline by six months due to the nationwide lockdown's impact on completing the process. The decision was supported by legal provisions and orders from the Supreme Court of India, National Company Law Appellate Tribunal, and regulations from the Insolvency and Bankruptcy Board of India, acknowledging the challenges posed by the COVID-19 pandemic on meeting statutory timelines.
Issues: - Urgent hearing sought for IA No. 329/2020 - Exclusion of lockdown period from liquidation process period
Issue 1: Urgent hearing sought for IA No. 329/2020 The applicant filed IA No. 328/2020 seeking an urgent hearing for IA No. 329/2020. The Tribunal allowed IA No. 328/2020, leading to the consideration of IA No. 329/2020 for hearing. Consequently, CA No. 328/2020 was disposed of.
Issue 2: Exclusion of lockdown period from liquidation process period The Liquidator of M/s. Dunn Foods Pvt. Ltd. filed IA No. 329/2020 under relevant regulations seeking the exclusion of the lockdown period from the liquidation process timeframe. The liquidation process period, originally set to expire on 05.02.2020, was extended by six months. However, due to the nationwide lockdown from 25.03.2020 to 30.06.2020, the liquidation process could not be completed. The applicant cited the orders of the Hon'ble Supreme Court of India, National Company Law Appellate Tribunal, and regulations issued by the Insolvency and Bankruptcy Board of India in support of the request for exclusion of the lockdown period. The Tribunal, considering the circumstances and legal provisions, allowed IA No. 329/2020, thereby excluding the lockdown period from the liquidation process timeframe.
In conclusion, the Tribunal granted the applicant's request for the exclusion of the lockdown period from the liquidation process timeframe, as supported by relevant legal provisions and orders. The judgment highlighted the impact of the COVID-19 pandemic on legal proceedings and the measures taken by various authorities to address the challenges faced by stakeholders in meeting statutory timelines during the lockdown period.
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