TaxTMI 
TaxTMI 
2021 (6) TMI 120
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....on the account of time taken to decide IA 4208 of 2020 whereby the resolution professional was replaced, and accordingly, in the interest of justice, the timelines may be extended. (c) That the Adjudicating Authority may be pleased to allow the exclusion of "One Sixty (160) days" from the total time period of 330 days' as mandated by Section 12 of Code on account of time-loss due to the lockdown imposed by the Centre and State in India, and accordingly, in the interest of justice, the timelines may be extended. (d) That this Adjudicating Authority, in the interest of justice, may be pleased to extend the CIRP by a total period of "Two-Eighty Three (283) days" [123+160] from the date of grant of approval for the exclusions as prayed for hereinabove. 2. The brief facts leading to filing of the instant application are as under: i. That CIRP was initiated against the Corporate Debtor, J.P. Engineers Private Limited vide order dated 26.02.2020 and Mr. Sumit Bansal was appointed as Interim Resolution Professional ("IRP"). ii. That on 03rd March 2020, the shareholder of the Corporate Debtor preferred an appeal [Company Appeal (AT) (INS.) No. 379 ....
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.... extant resolution professional with Mr. Vivek Raheja -resolution professional empanelled with the Bank. vii. That on 27th September 2020, the CoC had moved an Interlocutory Application [IA 4208/2020] for replacement of resolution professional under Section 22(3)(b) of the Code. The said I.A. for the first time was called for hearing on 07th October 2020 and it was decided by the Adjudicating Authority in favor of the CoC vide order dated 27th January 2020 by approving the appointment of Mr. Vivek Raheja as the resolution professional (hereinafter, the "replacer-resolution professional"). viii. That the erstwhile Resolution Professional had filed the following two Interlocutory Applications seeking approval of exclusion/extension of CIRP period: ix. That in the Sixth meeting of the members of CoC (held on 05th January, 2021), the members were informed by the erstwhile resolution professional that the maximum period of 330 days as contemplated by Section 12 of the Code is expiring on 21st January 2021. x. That in the same meeting, the members of CoC advised the erstwhile resolution professional that timeline of 330 days is a timeline in the ordina....
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....er dated 30th January 2021], Mr. Saurabh Jain for Sharu Industries Private Limited [vide email dated 07th February 2021 (7:38 PM)] and Mr. K.R. Choudhary of J.K. Enterprises [vide email dated 07th February 2021 (9:50 PM)] have shown interest in Form G. xv. That on 24th March 2020, the government of India ordered a nationwide Lockdown for an initial period of 21 days and it got further extended. xvi. That by the time the appointment of the replacer-resolution professional was ratified by the Adjudicating Authority [vide order dated 27th January 2021 in IA 4028 of 2020], the period of 330 days as mandated by Section 12 of the Code had already expired [the expiry date being 21st January 2021]. xvii. That by placing reliance on the ratio laid down by Hon'ble Supreme Court of India in Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta & Ors. [Civil Appeal No. 8766-67 of 2019], the replacer-resolution professional has requested this Adjudicating Authority to exclude the time period of "One-Hundred-Twenty-Three(123) days" [as calculated from 27th September 2020 (date of filing) till 27th January 2021 (date of disposal)] from the maximu....
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...., the following Order delivered by the Principal Bench of the Adjudicating Authority on 09th December 2020 in I.A 5320/2020 in IB 263(PB)/2018 - State Bank of India v. M/s. Century Communication Ltd. & Ors.: "TA-5320/2020 filed by the Liquidator seeking exclusion of lockdown period from 25.03.2020 to 30.08.2020 is hereby allowed granting exclusion of 160 days (from 25.03.2020 to 30.08.2020) from the liquidation period." xxii. Thus, the replacer-resolution professional has requested this Adjudicating Authority to exclude a total period of "Two-Eighty-Three (283) days" [123+160] from the maximum period of 330 days as mandated by Section 12 of the Code. xxiii. That it is further submitted by the applicant that investors have shown interest in Form G pursuant to its publication and there is a good chance of the Corporate Debtor not falling into the rigors of liquidation. Further, in the wake of the exceptional circumstances delineated above, if the time period of "Two-Eighty-Three (283) days' is not excluded from the time period of 330 days, the Corporate Debtor shall be stripped off its fundamental rights guaranteed under Article 14 and Article 19(1)(g) ....
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....this period i.e. 123 days may also be excluded while calculating the period of Corporate Insolvency Resolution Process (hereinafter referred as "CIRP") on the ground of pendency of application for replacement of RP. 7. He further submitted that the Principal Bench, NCLT, New Delhi in IA/5320/2020 on 09.12.2020 exclude the period of liquidation on the ground of lockdown commencing from 25.03.2020 to 30.08.2020. 8. He further submitted that Hon'ble Supreme Court of India in the case of Essar Steel India Limited Vs. Satish Kumar & Ors reported as Civil Appeal No. 8766-67 of 2019 held that second proviso of Section 12(3) is not mandatory. 9. In the light of the submissions raised on behalf of the applicant, we consider the averment made in the application and we notice that in other matters on the ground of lockdown imposed by the Central Government as well as State Government, we have excluded the period from 25.03.2020 to 30.06.2020 i.e. total 97 days while calculating the total period of CIRP and while applying the same principle in this matter, we hereby exclude the period from 25.03.2020 to 30.06.2020 i.e. total 97 days (instead of period from 25.03.2020 to 31.08.2020....