Extension granted for filing audited financial results & SEBI compliance under Insolvency & Bankruptcy Code.

The Tribunal, under Section 60 (5) of the Insolvency & Bankruptcy Code, 2016, granted an extension until March 31, 2021, for filing audited financial results and complying with SEBI LODR Regulations. The Resolution Professional's challenges due to the Covid-19 pandemic and pending liquidation application were considered, leading to the decision to provide additional time for statutory compliance. The Tribunal acknowledged the efforts made by the Resolution Professional and recognized the need for flexibility in meeting regulatory requirements amidst exceptional circumstances.

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Issues:
Extension of time for filing statutory compliances before Securities and Exchange Board of India under Section 60 (5) of Insolvency & Bankruptcy Code, 2016.

Analysis:

Issue 1: Condonation of Time Limits for Filing Audited Financial Results

The Applicant, a Resolution Professional for the Corporate Debtor, sought an extension of time for filing audited financial results due to the Covid-19 pandemic and the pending liquidation application. The Applicant highlighted the difficulties in meeting the extended deadline of July 31, 2020, set by the Securities Exchange Board of India (SEBI). The Tribunal considered the circumstances and granted an extension until March 31, 2021, for filing audited financial results.

Issue 2: Condonation of Time for Compliance with SEBI LODR Regulations

The Applicant requested condonation of time for complying with various SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, especially for the months of July, August, and September 2020. The Applicant faced challenges due to the Covid-19 lockdown and lack of staff for compliance. Despite efforts to seek extension from SEBI and IBBI, no response was received. The Tribunal acknowledged the Resolution Professional's efforts and granted an extension until March 31, 2021, to comply with Regulation 24A and other applicable SEBI LODR Regulations.

Issue 3: Consideration of Exertions and Liquidation Order

The Tribunal recognized the Resolution Professional's efforts to secure extensions and waivers for compliance under SEBI LODR Regulations. Despite the lack of response from regulatory authorities, the Tribunal considered the Resolution Professional's submissions and the subsequent liquidation order issued on November 2, 2020. In light of these factors, the Tribunal deemed it appropriate to grant additional time for statutory compliance during the specified months.

Conclusion:

The Tribunal, exercising its powers under Section 60 (5) of the Insolvency & Bankruptcy Code, 2016, allowed the application and extended the time limits for filing audited financial results and complying with SEBI LODR Regulations until March 31, 2021. The decision considered the exceptional circumstances faced by the Resolution Professional and the Corporate Debtor, ensuring a fair opportunity for compliance despite the challenges posed by the pandemic and pending liquidation proceedings.

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