TaxTMI 
TaxTMI 
2021 (5) TMI 731
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....ny Petition. The present Applicant was one of the Resolution Applicants in response to the Public Announcement and subsequent action taken during CIRP. This Tribunal by an order dated 16.10.2019 (wrongly mentioned as 19.10.2019 in the Application) in MA No. 660 of 2019 approved the Resolution Plan submitted by the Applicant. 3. The former promoters of the Corporate Debtor were engaged in various nefarious activities and criminal prosecution had been initiated against them. They had reportedly been arrested and had been in jail prior to the admission of the aforementioned Company Petition. 4. The Corporate Debtor was involved in the development of one Real Estate Project namely the Industrial Gala Complex admeasuring 6645.10 sq. mtrs. in Kandivali (West), Mumbai. The Company Petitioner and the Gala owners were the financial creditors of the Corporate Debtor. It was felt necessary that if the Gala owners themselves could submit a Resolution Plan, their earlier investment would remain protected and the Company would not go into liquidation which ultimately may adversely affect their investment. Eventually all the Gala owners supported the Resolution Plan submitted by the Applica....
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....gations. It would therefore be unfair to expect the Applicant to comply with the statutory obligations of the Corporate Debtor anterior to 16.10.2019. The Applicant is unable to access those information / data basing on which the statutory compliances are to be made. The Applicant has accordingly made representation to R2 in that regard, which is pending for consideration. 10. It is further submitted that the Resolution Plan was to be implemented within a period of 10-12 months from the date of approval (i.e. 16.10.2019). But because of onset of the Covid-19 Pandemic from March 2020 and resultant dislocation / disruption all around, the Applicant has not been able to complete the implementation within time. 11. Considering the gravity of the situation facing the whole world the Hon'ble Apex Court and the Hon'ble National Company Law Appellate Tribunal (NCLAT) have extended the timelines and suitable amendments have also been made to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 in that regard. The Applicant accordingly seeks the following reliefs. i) That this Hon'ble Tribunal may be pleased to direct the Respondent No. 2 to not ins....
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....t this matter on 05.10.2020 for further orders." 14. On 05.10.2020 considering the technical difficulty, the Bench passed the following order: "Mr. Amir Arsiwala, Counsel for the Successful Resolution Applicant is present. Ms. Yogini Chauhan, Deputy Registrar representing the RoC is also present and submits regarding Efiling that it will be appropriate for the Applicant to approach the RoC for the Resolution of the problem which Applicant / Resolution Applicant is facing. Thus the Applicant may take up the matter with the RoC for Resolution of the issue. List the matter on 28/10/2020 awaiting result of the discussion between the Applicant and the RoC." 15. It appears that the matter has not been resolved yet and intervention of the Bench has thus become imperative. 16. The Applicant in his Additional Affidavit dated 17.09.2020, has informed to have undertaken the following works in pursuance to the Resolution Plan. "10. With respect to the timeline for completion of the Resolution Plan the following acts were undertaken in February and March 2020: a. A new Company Secretary was appointed to expedite work. b. BMC's temporary waterline pay....
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.....e., Rs. 26,13,467/- was paid on 11.09.2020." 17. It is further submitted that the Corporate Debtor initially used extensible business reporting language (XBRL) for the purpose of filing with the Respondent No. 2. XBRL being the standardized computer language that businesses use to send information back and forth. The same is the requirement when the share capital of firm is above Rs.. 5,00,00,000/-. Now that the share capital of the Company has reduced to Rs.. 1,05,000/- the management should not be forced to file through this medium. However, once XBRL is adopted it would not be possible for the Company to use another medium for filing. This however should not be applied to the present case. The Company faced with such a predicament, should be allowed the normal procedure for filing. Since the former promoters had not conducted regular Board Meetings, the Applicant is at a loss to put the date of the Board Meetings in the Forms. In the absence of which the Form in online filing is not accepted. The Corporate Debtor accordingly could be allowed to put 'best estimate date' when the board meetings of the erstwhile directors ought to have taken place during the particular financia....
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....r Amarjit Singh Kalra v. Pramod Gupta: (2003) 3 SCC 272 observed that laws of procedure are meant to regulate effectively, assist and aid the object of doing substantial and real justice and not to foreclose even an adjudication on merits of substantial rights of citizens under personal, property and other laws. Procedure has always been viewed as the handmaid of justice and not meant to hamper the cause of justice or sanctify miscarriage of justice. In the same vein the Hon'ble Court in N. Balaji v. Virender Singh: (2004) 8 SCC 312 observed that the procedure would not be used to discourage the substantial effective justice but would be so construed as to advance the cause of justice. The Hon'ble Court in Collector, Land Acquisition v. Mst. Katiji: AIR 1987 SC 1353 ruled that when substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred. The principle has also been echoed by the Hon'ble Supreme Court in Laxmibai v. Bhagwantbuva (Civil Appeal No. 2058 of 2003 decided on 29.01.2013). 21. Taking the facts and circumstances of the case into consideration and the principles decided, it would accordingly be ....