2026 (4) TMI 73 - AT - IBC

Liquidation time extension granted after prior limits, with non-compliance to revive the direction to seek dissolution.

Liquidation proceedings pending since 2019 were considered against the backdrop of several prior extensions and an earlier express stipulation that no ... Seeking extension of Time for the purposes of completion of the liquidation process - Condonation of Delay - Last opportunity subject to undertaking. Extension of liquidation process - Undertaking by liquidator - Dissolution direction - HELD THAT:- The Appellate Tribunal held that, having regard to the conduct of the liquidator and the manner in which the liquidation had remained pending for more than six years, no further extension was otherwise deserved. Even so, exclusively in the interest of justice, and to enable the sale process already undertaken to reach its logical end, a final extension of three months was granted on the basis of the undertaking given through counsel that the process would be completed within that period. The earlier order directing filing of a dissolution application was directed to remain in suspension only during this extended period, with automatic revival if the liquidation was not completed within the time now granted. [Paras 6, 7, 8, 9] The order refusing further extension was quashed and modified to grant a final extension up to 19.05.2026; the earlier direction to file for dissolution was kept in abeyance till then and would automatically revive on default. Final Conclusion: The Appellate Tribunal granted the liquidator a final and limited extension to complete the liquidation process, solely in the interest of justice and subject to his undertaking. The connected challenge to the earlier dissolution direction was disposed of by keeping that direction suspended during the extended period, with automatic revival if the process remained incomplete. Issues: (i) Whether further time should be granted to complete the liquidation process and the order declining extension should be interfered with.Analysis: The liquidation had been pending since 2019 and several prior extensions had already been granted, the last one carrying an express stipulation that no further extension would be allowed. The Court nevertheless noted the stated difficulties in completing the process and accepted the appellant's undertaking that the liquidation would be concluded by 19.05.2026. To enable the pending sale and liquidation steps to reach their logical end, the Court treated the present request as deserving one final opportunity, while making it clear that non-compliance would revive the earlier direction to move for dissolution.Conclusion: Further extension of time was granted till 19.05.2026, the refusal order was set aside to that extent, and the connected delay in filing was condoned.