CIRP time exclusion allowed where resolution remained live and a plan or withdrawal was still realistically possible.

The Tribunal allowed exclusion of 60 days from the CIRP period under its insolvency powers, noting that the resolution process remained active, multiple resolution applicants had shown interest, and the Committee of Creditors sought further time. It held that where there is a realistic prospect of approval of a resolution plan or withdrawal under Section 12A, time may be extended or excluded to further the object of the Code and preserve the corporate debtor as a going concern. The Resolution Professional was permitted to complete the CIRP on or before 24.08.2021, failing which the matter would move toward liquidation under Section 33.

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Issues: Whether the period of 60 days was liable to be excluded from the CIRP period and the Resolution Professional permitted to complete the CIRP up to 24.08.2021.

Analysis: The application was moved under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the National Company Law Tribunal Rules, 2016 seeking exclusion of time from the period already granted by the Tribunal. The record showed that multiple prospective resolution applicants had shown interest, the Committee of Creditors had resolved to seek further extension, and the process was still live with a possibility of either approval of a resolution plan or withdrawal under Section 12A of the Code. In these circumstances, and keeping in view the object of the Code to enable insolvency resolution and continuation of the corporate debtor as a going concern, the Tribunal found it to permit further time.

Conclusion: The request for exclusion of 60 days was allowed, and the Resolution Professional was permitted to complete the CIRP on or before 24.08.2021.

Final Conclusion: The insolvency process was kept alive for a further limited period to facilitate resolution, with the matter to move to liquidation proceedings under Section 33 of the Insolvency and Bankruptcy Code, 2016 if completion did not occur within the extended time.

Ratio Decidendi: Where the resolution process remains actively underway and there is a realistic prospect of either approval of a resolution plan or withdrawal under Section 12A, the Tribunal may exercise its powers to extend or exclude time to advance the object of resolution and preserve the corporate debtor as a going concern.

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