CIRP time exclusion for exceptional delay permitted where revival of the corporate debtor remained in stakeholders' interest.

Exclusion of time from the corporate insolvency resolution process was allowed where the resolution professional sought adjustment for pandemic-related disruption, medical incapacity, delay in CoC approval and other unavoidable circumstances. The Tribunal applied the principle that 330 days is ordinarily the outer limit for CIRP, but recognised exceptional cases where only a short further period is needed and revival of the corporate debtor remains in stakeholders' interest. On those facts, the period requested was excluded from the CIRP computation and the resolution process was extended accordingly.

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Issues: Whether the period sought by the Resolution Professional could be excluded from the corporate insolvency resolution process period and the CIRP period extended beyond the prescribed limit.

Analysis: The application was made under the insolvency jurisdiction of the Tribunal seeking exclusion of specific periods on account of the pandemic, medical incapacity of the Resolution Professional, delay in the CoC approval process, and unavoidable personal circumstances. The resolution plan had already been approved by the CoC, and the matter had reached its final stage. Relying on the principle that the 330-day period is ordinarily the outer limit, but that extension may be granted in exceptional cases where short delay remains and revival of the corporate debtor is in the interest of stakeholders, the Tribunal found the case to be exceptional and fit for exclusion and extension.

Conclusion: The exclusion of the prayed period from the CIRP was allowed and the CIRP period was extended till 02.03.2022.

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