2021 (10) TMI 181 - Tri - Insolvency and Bankruptcy

Tribunal Grants Amendment Request but Denies Time Extension Motion in Liquidation Case

The Tribunal allowed the Applicant's request to amend the application in IA-1317/2019, permitting the filing of the amended copy. However, the Tribunal ... Prayer for amendment in the application numbering IA-1317/2019 filed by the Applicant - HELD THAT:- Since the notice has not been issued in the IA-1317/2019, before issuance of the notice to the respondents, the applicant is entitled to make amendment in its application and respondent gains right to oppose only when he appears and files the reply. So considering these facts, there are no option but to allow the prayer of the Applicant. Accordingly, the present application is allowed. The Applicant is directed to incorporate the amendment proposed in this IA and file the amended application i.e., IA-1317/2019. Issues:1. Amendment of application IA-1317/20192. Permission to file amended copy of the application3. Exclusion of time spent in lockdown and extension of liquidation periodAmendment of application IA-1317/2019:The Applicant filed IA/4674/2020 seeking amendment in the application numbering IA-1317/2019. The Respondent opposed the prayer, arguing that the proposed amendment sought to change the cause of action and nature of the application. The Respondent referred to Rule 155 of NCLT Rules, emphasizing that amendments should not alter the cause of action, cause prejudice, or defeat a legal right due to lapse of time. The Respondent contended that the Applicant's proposed amendment created an entirely new case, challenging the decline in inventory value instead of the fraudulent transaction under Section 66 of the Code. The Tribunal noted that since the Respondent had not appeared in IA-1317/2019 and no notice had been issued, the Applicant was entitled to make amendments before the issuance of notice. Consequently, the Tribunal allowed the Applicant's prayer for amendment and directed the incorporation of the proposed amendments in IA-1317/2019.Permission to file amended copy of the application:Following the allowance of the amendment in IA-4674/2020, the Applicant sought permission to file the amended copy of the application in IA-1317/2019. The Tribunal granted the prayer, allowing the filing of the amended copy and scheduled a listing for further proceedings.Exclusion of time spent in lockdown and extension of liquidation period:In IA-5552/2020, the Applicant prayed for the exclusion of time spent in lockdown and extension of the liquidation period of the Corporate Debtor until the disposal of the Order under Section 66 of the IBC. The Tribunal noted that the prayer lacked specificity regarding the period for exclusion and extension sought by the Applicant. Consequently, the Tribunal dismissed the IA, granting liberty to the Applicant to file a fresh application in compliance with the provisions of the law.In conclusion, the Tribunal allowed the amendment in IA-1317/2019, permitted the filing of the amended copy, and dismissed the prayer for exclusion of time and extension of the liquidation period due to lack of specificity.