Tribunal Extends CIRP Deadline Due to Covid-19 Challenges

The Tribunal granted an extension of the Corporate Insolvency Resolution Process (CIRP) period by 60 days, excluding the lockdown period from 10.05.2021 to 14.06.2021, totaling 95 days, with the CIRP now ending on 20.09.2021. The Resolution Professional faced challenges due to the Covid-19 pandemic, leading to delays in meetings and asset valuation. Despite conducting meetings via video conferencing, delays in the Resolution Plan submission necessitated the extension. The Tribunal emphasized completing the CIRP within prescribed timelines under the Insolvency and Bankruptcy Code, 2016, without specifying additional orders or directions.

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Issues:
- Exclusion of time period during lockdown
- Extension of time under section 12(2) of the Insolvency and Bankruptcy Code, 2016
- Other orders or directions deemed fit by the Hon'ble Bench

Exclusion of Time Period During Lockdown:
The Resolution Professional filed an application seeking exclusion of the time period from 10.05.2021 to 14.06.2021 due to lockdowns and restrictions imposed by the State and Central Governments affecting the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The Tribunal had previously excluded the lockdown period from 25.03.2020 to 31.12.2020. Considering the ongoing CoC deliberations on the Resolution Plan, the Tribunal granted further exclusion from 10.05.2021 to 14.06.2021 and extended the CIRP period by 60 days, totaling 95 days. The CIRP period for the Corporate Debtor was extended to end on 20.09.2021.

Extension of Time under Section 12(2) of the IBC, 2016:
The Resolution Professional faced challenges due to the Covid-19 pandemic, leading to delays in CoC meetings and the valuation of the Corporate Debtor's assets. Despite the difficulties, CoC meetings were conducted through video conferencing. The Resolution Plan submission and review process faced delays, necessitating an extension of the CIRP period. The Tribunal, considering the circumstances and Regulation 40C of the IBBI Regulations, granted the requested extension and exclusion of the lockdown period, emphasizing the importance of completing the CIRP within the prescribed timelines under the Code.

Other Orders or Directions Deemed Fit by the Hon'ble Bench:
Apart from the exclusion and extension of the CIRP period, the Tribunal did not specify any other orders or directions deemed fit in the circumstances of the case. The focus of the judgment was primarily on addressing the challenges faced during the CIRP of the Corporate Debtor due to the Covid-19 pandemic and ensuring the completion of the resolution process within the extended timeline provided by the Tribunal.

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