2019 (11) TMI 1470

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....lication." 2. The Applicant avers that the Corporate Insolvency Resolution Process (CIR Process) of the Corporate Debtor was initiated on 25.09.2018 and that the period of 180 days expired on 24.03.2019. However, prior to the expiry of 180 days, this Authority had extended the period by another 90 days vide its Order dated 20.03.2019 passed in MA/256/2019 and taking into consideration the extended period of 90 days, the CIR Process expired on 21.06.2019. However, the CIR Process was not completed within the said extended period and based on the decision of the CoC, a Miscellaneous Application in MA/596/2019 was filed before this Authority seeking for exclusion of 60 days time period from the CIR Process and that the same was also granted b....

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..... 5. From the facts as averred in the Application, it is evident that this Authority has been granting extension of time or exclusion of time as sought for by the Resolution Professional based on the decision of the CoC to enable the Resolution of the Insolvency of the Corporate Debtor. Despite the same, the Resolution Professional and the CoC are not able to finalize the Resolution Plans as may be submitted before the CoC or identify a successful Resolution Applicant even after the expiry of more than a year as CIR Process was initiated even as per the averments made in the Application, on 25.09.2018 6. From the amendment recently incorporated in relation to Section 12 of the I&B Code, 2016, which reads as foliows:- "12. Time-limit for....

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.... such resolution process of the corporate debtor: Provided also that where the insolvency resolution process of a corporate debtor is pending and has not been completed within the period referred to in the second proviso, such resolution process sliall be completed within a period of ninety days from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019.] 7. A reading of the above provisions of Section 12 of the I&B Code, 2016, in particular, the 2nd proviso to Subsection 3 of Section 12, shows that the CIR Process is required to be mandatorily completed within a period of 330 days from the Insolvency commencement date. As already pointed out as above, in the case on hand, more than one year has lapsed from....

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.... only a short period is left for completion of the insolvency resolution process beyond 330 days, and that it would be in the interest of all stakeholders that the corporate debtor be put back on its feet instead of being sent into liquidation and that the time taken in legal proceedings is largely due to factors owing to which the fault cannot be ascribed to the litigants before the Adjudicating Authority and/or Appellate Tribunal, the delay or a large part thereof being attributable to the tardy process of the Adjudicating Authority and/or the Appellate Tribunal itself it may be open in such cases for the Adjudicating Authority and/or Appellate Tribunal to extend time beyond 330 days. Likewise, even under the newly added proviso to Sectio....