TaxTMI 
TaxTMI 
2018 (6) TMI 904
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Ranjana Ray and Mr. Pervinder, Advocates JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. The appellant - "Financial Creditor" has preferred this appal for modification of order dated 27th April, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, Hyderabad in C.P. (IB) No. 97/7/HDB/2017 relevant portion of which reads as follows : "In CP (IB) 97/7/HDB/2017 as stated supra, several applications are pending for adjudication by this Authority. There is no scope of adjudicating all the above applications before the expiry of 270 days. Therefore, taking into consideration the decisions stated supra relied upon by the Learned Senior Counsel for the Financial creditors and the fact that CIRP coul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....thority. 3. Learned counsel appearing on behalf of the appellant submitted that for about 166 days, the 'corporate insolvency resolution process' remained stayed due to interim order passed by the Adjudicating Authority. In view of interim order no meeting of 'Committee of Creditors' could take place during the pendency of C.A. No. 197 of 2017 which was filed by one of the Director of the 'Corporate Debtor' challenging the constitution of 'Committee of Creditors'. The order of stay was vacated only on 28th February, 2018 whereinafter further 'corporate insolvency resolution process' could proceed. 4. The appellant has brought on record the time chart to suggest the delay, as took place as follows: S.NO. DATE STAGE DAYS ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hin a period of one hundred and eighty days from the date of admission of the application to initiate such process. (2) The resolution professional shall file an application to the Adjudicating Authority to extend the period of the corporate insolvency resolution process beyond one hundred and eighty days, if instructed to do so by a resolution passed at a meeting of the committee of creditors by a vote of seventy-five per cent of the voting shares. (3) On receipt of an application under sub-section (2), if the Adjudicating Authority is satisfied that the subject matter of the case is such that corporate insolvency resolution process cannot be completed within one hundred and eighty days, it may by order extend the duratio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ified their performance during the 180 days. In such circumstances, it was duty on the part of the Adjudicating Authority to extend the period to find out whether a suitable resolution plan is to be approved instead of going for liquidation, which is the last recourse on failure of resolution process. 6. For the aforesaid reasons, we set aside the impugned order dated 18th December, 2017 and extend the period of resolution process for another 90 days to be counted from today. The period between 181st day and passing of this order shall not be counted for any purpose and is to be excluded for all purpose. Now the Adjudicating Authority will proceed in accordance with law." 7. In "Amar Remedies Ltd. (Through the Resolution Profess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated 15th January, 2018, we hold that the period from 1st August, 2017 to 14th January, 2018 will not be counted for the purpose of counting total period of 180 days for completing the 'Resolution Process'. In case the 'Resolution Process' is not completed within 180 days, even after excluding the period aforesaid, it will be open to the 'Committee of Creditors'/ 'Resolution Professional' to request the Adjudicating Authority for more time." 8. One or other Adjudicating Authority including Adjudicating Authority (Hyderabad Bench), Hyderabad, (Kolkata Bench), Kolkata and (Ahmedabad Bench), Ahmedabad have also passed the order excluding such period taking into consideration the facts and circumstances of each case. 9. From the decisions....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the Appellate Tribunal is reversed by the Hon'ble Supreme Court and corporate insolvency resolution process is restored. (vi) Any other circumstances which justifies exclusion of certain period. However, after exclusion of the period, if further period is allowed the total number of days cannot exceed 270 days which is the maximum time limit prescribed under the Code. 11. In the present case, as the corporate insolvency resolution process remained stayed for 166 days due to the interim order passed by the Adjudicating Authority on 15th September, 2017 which was vacated on 28th February, 2018, we hold that the 'Committee of Creditors' / 'Resolution Professional' rightly requested the Adjudicating Authority to exclude the perio....