Tribunal Denies RP's Time Exclusion Request, Emphasizes Duty and Urges Asset Control

The Tribunal rejected the Resolution Professional's application seeking exclusion of time under Section 60(5) for opinion formation, emphasizing RP's independent duty. Non-cooperation of Corporate Debtor personnel in providing essential details was criticized, with the RP urged to take control of assets and documents diligently. The Tribunal stressed RP's obligation to actively discharge duties and criticized the lack of seriousness. While acknowledging Adjudicating Authority's discretion to extend CIRP time, the Tribunal found RP's grounds lacking merit and rejected the application, directing further examination by IBBI.

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Issues:
Exclusion of time period under section 60(5) for formation of opinion and determination by Resolution Professional (RP) regarding transactions, Non-cooperation of Corporate Debtor personnel with RP, Duty of RP to take custody and control of assets and documents of Corporate Debtor, Discretion of Adjudicating Authority to enlarge time for completion of Corporate Insolvency Resolution Process (CIRP).

Exclusion of Time Period under Section 60(5):
The RP filed an application seeking exclusion of the period from the commencement of CIRP until the availability of books of accounts and details from the Corporate Debtor to form an opinion under regulation 35A of the CIRP Regulations. The CoC suggested the RP to form an opinion before appointing a transaction auditor, but the Tribunal emphasized that it is the RP's duty to independently form an opinion and not rely on CoC's suggestions. The Tribunal held that seeking exclusion of time to form an opinion is not the appropriate course. The RP's failure to diligently pursue an application under section 19(2) for non-cooperation of Corporate Debtor personnel was also highlighted.

Non-cooperation of Corporate Debtor Personnel:
The RP alleged non-cooperation from the Corporate Debtor personnel in providing assets, books of accounts, and other details, hindering the RP's ability to form an opinion. The Tribunal emphasized that the RP must actively pursue remedies under section 19 against non-cooperating members and take custody and control of all assets and documents of the Corporate Debtor. The Tribunal criticized the RP's lack of seriousness in discharging duties under the Code.

Duty of RP to Take Custody and Control:
The Tribunal stressed that it is the RP's responsibility to take custody and control of assets and documents of the Corporate Debtor, not solely reliant on the cooperation of the suspended board members. The RP's failure to demonstrate diligent discharge of duties was highlighted, emphasizing the RP's obligation to actively fulfill responsibilities under the Code.

Discretion of Adjudicating Authority to Enlarge Time:
While acknowledging the discretion of the Adjudicating Authority to enlarge the time for CIRP completion, the Tribunal noted that such discretion should be used judiciously in cases close to resolution. The Tribunal found the RP's grounds for seeking exclusion of time as lacking merit and bordering on ludicrousness, especially as the Corporate Debtor was far from resolution. The Tribunal rejected the RP's application, deeming it incomplete and farcical, and directed the Registry to inform the IBBI for necessary examination and directions.

This detailed analysis covers the issues involved in the judgment, highlighting the Tribunal's findings and reasoning regarding each aspect of the case.

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