Exclusion of CIRP timelines where project segregation and negotiations prevented issuing Form G, permitting period to be excluded.

The article addresses exclusion of a specified period from CIRP timelines where project-wise segregation and ongoing project-specific negotiations prevented the Resolution Professional from issuing Form G and advancing the process. It states the operative legal point that impediments arising from negotiation, settlement efforts, and awaiting project segregation constitute causes beyond the control of the Resolution Professional, justifying exclusion of the period in question; the practical effect was allowance of the exclusion application and setting aside of the Adjudicating Authority's contrary order.

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Issues: Whether the period from 12.06.2024 to 21.11.2025 should be excluded from the CIRP timelines by allowing IA No.410 of 2026 challenging the Adjudicating Authority's rejection of the exclusion application.

Analysis: The dispute concerns an insolvency proceeding of a real estate corporate debtor with multiple projects where project-wise segregation affected the ability to proceed with the CIRP and to issue Form G. The Resolution Professional relied on CoC resolutions and events relating to negotiation and settlement for the CHD Vann project, and on the fact that the project was segregated by order dated 21.11.2025. The Adjudicating Authority rejected exclusion because hearings had occurred and orders were pronounced on 21.11.2025; however, the record shows substantive impediments arising from ongoing project-specific negotiations and the need to await segregation and related instructions before issuing Form G. The appellate court found these facts sufficient to constitute causes beyond the control of the Resolution Professional that prevented timely progress of the CIRP and justified exclusion of the specified period.

Conclusion: IA No.410 of 2026 is allowed and the period from 12.06.2024 to 21.11.2025 is excluded from the CIRP timelines, setting aside the Adjudicating Authority's order dated 20.02.2026; appeal is allowed in favour of the appellant.

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