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of <h1>Tribunal Extends CIR Process by 60 Days, Deducts Lockdown Period</h1> <h3>Punjab National Bank Versus Kudos Chemie Ltd. and Ors.</h3> The Tribunal extended the Corporate Insolvency Resolution (CIR) process period by 60 days beyond the initial 270 days, deducting the lockdown period from ... Seeking extension of period of 60 days beyond 270 days for the Corporate Insolvency Resolution process - 2nd Proviso to Section 12(3) of the I & B Code, 2016 - HELD THAT:- The Hon'ble National Company Law Appellate Tribunal in IN RE : SUO MOTO [2020 (6) TMI 495 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI] that the period of lockdown ordered by the Central Government and the State Governments including the period as may be extended either in whole or part of the country, where the registered office of the Corporate Debtor may be located, shall be excluded for the purpose of counting of the period for 'Resolution Process under Section 12 of the Insolvency and Bankruptcy Code, 2016, in all cases where 'Corporate Insolvency Resolution Process' has been initiated and pending before any Bench of the National Company Law Tribunal or in Appeal before this Appellate Tribunal. Thereafter, the Insolvency and Bankruptcy Board of India, inserted Regulation 40C to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, vide notification dated 29.03.2020 which states that Notwithstanding the time-lines contained in these regulations, but subject to the provisions in the Code, the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process - Similarly, the Insolvency and Bankruptcy Board of India, vide notification dated 20.04.2020, inserted Regulation 47 A to the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and the said regulation states that Subject to the provisions of the Code, the period of lockdown imposed by the Central Government in the wake of Covid-19 outbreak shall not be counted for the purpose of computation of the timeline for any task that could not be completed due to such lockdown, in relation to any liquidation process. In the circumstances and in view of the orders referred and the IBBI Regulations and also in view of the receipt of resolution plans, the instant IA is disposed of by extending the period of CIR Proceedings by 60 days beyond 270 days, after deducting the period from 25.03.2020 to 31.07.2020 - Application allowed. Issues:Extension of period for Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code due to COVID-19 lockdown.Issue 1: Extension of CIR Proceedings PeriodThe Resolution Professional of M/s. Kudos Chemie Ltd. filed an application seeking an extension of the Corporate Insolvency Resolution (CIR) process period beyond the initial 270 days under Section 12(3) of the Insolvency and Bankruptcy Code. The Committee of Creditors (COC) had passed a resolution with 88.74% voting share to extend the CIR process by 60 days due to the lockdown period affecting the processing of received resolution plans. The applicant sought directions for this extension, citing the lockdown's impact on the resolution process timeline.Issue 2: Legal Framework and OrdersThe judgment referred to various legal orders and regulations related to the extension of timelines due to the COVID-19 lockdown. The Supreme Court's order extended the period of limitation for all legal proceedings from 15th March 2020 until further notice. The National Company Law Appellate Tribunal also issued orders excluding the lockdown period for counting the CIR process timeline. Additionally, the Insolvency and Bankruptcy Board of India introduced Regulation 40C and Regulation 47A, excluding the lockdown period from the computation of timelines for the CIR process and liquidation process, respectively.Issue 3: Disposition of the ApplicationConsidering the legal framework, orders, and the circumstances of the case, the Tribunal disposed of the application by extending the CIR process period by 60 days beyond the initial 270 days, deducting the lockdown period from 25.03.2020 to 31.07.2020. The decision was made in line with the COC's resolution, the relevant legal provisions, and the impact of the lockdown on the resolution process timeline. The Tribunal directed the Registry to provide a copy of the order to the applicant's counsel.This judgment addressed the extension of the Corporate Insolvency Resolution process period due to the COVID-19 lockdown, considering the legal provisions, resolutions by the COC, and orders issued by higher judicial authorities and regulatory bodies. It highlighted the impact of the lockdown on the resolution process timeline and provided a comprehensive analysis of the legal framework governing such extensions.
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