Liquidation period exclusion for Section 230 compromise efforts also affects calculation of the liquidator's fee.

Time spent pursuing a compromise or arrangement under Section 230 of the Companies Act, 2013 after commencement of liquidation may be excluded from the liquidation period where Regulation 2B(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 applies, subject to the prescribed limit. The Tribunal treated the restructuring period, including the additional time granted for those efforts, as excludable for completing liquidation. As a result, the liquidator's fee was to be computed by excluding that period from the liquidation timeline.

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Issues: Whether the period during which a compromise or arrangement under Section 230 of the Companies Act, 2013 was pursued could be excluded from the liquidation period and whether the liquidator's fee was to be calculated by excluding that period.

Analysis: Regulation 2B(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 permits exclusion of the time taken on compromise or arrangement, subject to the prescribed limit, from the liquidation period. The request for restructuring under Section 230 was pursued after commencement of liquidation, and the Tribunal found that the period spent in that process, including the extended time granted for restructuring efforts, deserved exclusion while completing liquidation in accordance with the regulations.

Conclusion: The requested period was directed to be excluded from the liquidation period, and the liquidator's fee was to be calculated excluding that period.

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