CIRP extension may be granted to support corporate revival, but repeated delays and routine exclusions are discouraged.

The NCLT considered whether the corporate insolvency resolution process could be extended beyond an earlier fixed completion date. It noted that the Committee of Creditors had reviewed the revised resolution plan, the promoters' proposal had not been taken forward, and discussions with another resolution applicant were still ongoing. Although the CIRP had already crossed the normal outer limit and repeated extensions were discouraged, the Tribunal held that a short further extension could still be justified to support possible revival of the corporate debtor. The application was allowed and the CIRP period was extended up to 30.06.2021.

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Issues: Whether the corporate insolvency resolution process period could be extended beyond the earlier directed date and whether further extension of time was warranted on the facts.

Analysis: The application sought extension of the CIRP period in order to facilitate completion of the resolution process. The Committee of Creditors had considered the revised resolution plan and declined to proceed with the promoters' proposal, while the resolution process with the other resolution applicant was still under discussion. The Tribunal noted that the CIRP had already crossed the normal outer limit and that repeated extensions were being sought after earlier clear directions that the process should be completed by 01.05.2021. Even so, the Tribunal accepted that, in the interests of possible revival of the corporate debtor, a short further extension could still be granted, though the delay and pace of the process were strongly deprecated.

Conclusion: The request for extension was allowed, and the CIRP period was extended up to 30.06.2021.

Final Conclusion: The application succeeded and the insolvency resolution process was granted a limited further extension to enable completion of the resolution effort.

Ratio Decidendi: A short further extension of CIRP time beyond the usual limit may be granted where it is still necessary to facilitate revival of the corporate debtor, but repeated delay and routine seeking of exclusions are impermissible.

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