TaxTMI 
TaxTMI 
TaxTMI 
2021 (9) TMI 891
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....d as follows:- "7. Heard learned lawyer for the Applicant as well as the RP, also seen the record. It is a matter of record that the main petition, i.e. CP (IB) 98 of 2020, was admitted on 12.03.2020 and IRP was appointed, who invited claim(s) by making public announcement in Form-A and the last date for submission of claims were mentioned as 31.03.2020. However, considering the spread of Covid-19 and situation of national lockdown, the claims of the creditors were being accepted up to 12.06.2020. Even if the lockdown period as well as 90 days is excluded, it will come to 16.08.2020. However, the Applicant has submitted its claim on 04.09.2020, much beyond the stipulated time as well as extended period of 90 days and 68 days of lockdown period. 8. It is pertinent to mention herein that the Resolution Plan has already been received by the CoC as apprised by the RP and it is at the final stage of approval of the CoC on or before 08.03.2021 (as per RP). At this belated stage, if such types of applications are allowed, the Resolution Plans already received by the CoC from the prospective Resolution Applicants, may get failed, as those are filed on the basis of Information Utility (....
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....the RP has to prepare the list in accordance with the books of accounts and then invite claims otherwise the dues reflected in the books of accounts would be rendered completely meaningless and that the Resolution Professional did not perform his duties under law and is aiding the 'Corporate Debtor' in not paying the mandatory Government dues. 5. It is the case of the Respondent/Resolution Professional that the Appellant did not file their claim in time despite public announcement dated 18.03.2020 as well as the intimation through email dated 28.07.2020, a Resolution Professional placed reliance on the Facilitation Letter No. Facilitation/004/2020 dated 12.09.2020 issued by the Insolvency and Bankruptcy Board of India (IBBI) regarding the role of the Government and its agency and the Corporate Insolvency Resolution and Liquidation Process whereby the Government and its agencies were suggested to submit the claim alongwith the proof of claim within the specified time period to the Insolvency Professional in response to the public announcement made under Section 15 of the Code. A Resolution Professional has duly incorporated the details of the claim of the Appellant in the informati....
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....for receiving claims; (e) penalties for false or misleading claims; and (f) the date on which the corporate insolvency resolution process shall close, which shall be the one hundred and eightieth day from the date of the admission of the application under sections 7, 9 or section 10, as the case may be. (2) The public announcement under this section shall be made in such manner as may be specified. (Emphasis Supplied) 9. The aforenoted Section 15 is to be read with Regulation 6(2)(c) of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 which is reproduced as hereunder:- "6. Public announcement. .................. (2) The public announcement referred to in sub-regulation (1) shall: .................. (c) provide the last date for submission of proofs of claim, which shall be fourteen days from the date of appointment of the interim resolution professional." (Emphasis Supplied) 10. It is not in dispute that the last date of submission of claim in the public announcement was given as 31.03.2020. The date was extended after following due procedure under Regulation 40 of the Insolvency and Bankruptcy Bo....
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.... other registry that records the ownership of assets including- (i) assets over which the corporate debtor has ownership rights which may be located in a foreign country; (ii) assets that may or may not be in possession of the corporate debtor; (iii) tangible assets, whether movable or immovable; (iv) intangible assets including intellectual property; (v) securities including shares held in any subsidiary of the corporate debtor, financial instruments, insurance policies; (vi) assets subject to the determination of ownership by a court or authority; (g) to perform such other duties as may be specified by the Board. Explanation.-For the purposes of this 1[section], the term "assets" shall not include the following, namely:- (a) assets owned by a third party in possession of the corporate debtor held under trust or under contractual arrangements including bailment; (b) assets of any Indian or foreign subsidiary of the corporate debtor; and (c) such other assets as may be notified by the Central Government in consultation with any financial sector regulator. (Emphasis Supplied) 13. The Section 21(1) envisages the collation of claims which are received against ....
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....lan is approved, it shall be final and not subject to modification even if the statutory claims are not included in the Plan. 16. It is a matter of public record that in the public announcement dated 18.03.2020, the last date for submission of claims was mentioned as 31.03.2020. Additionally, the email dated 28.07.2020, kept the Appellant informed about the CIRP. The material before us does not show any response to this email. Hence, the delay of 19 days in filing the claim cannot be attributed to lack of knowledge. As regards administrative delays, the Hon'ble Supreme Court in a catena of Judgements has laid down that the entire time frame within which the CIRP ought to be completed is strictly mandatory in nature and cannot be extended. In 'Ebix Singapore Private Limited' Vs. 'Committee of Creditors of Educomp Solutions Limited & Anr.' reported in Civil Appeal No. 3224 of 2020, the Hon'ble Apex Court while dealing with the issue of withdrawals or modifications of the Resolution Plan, once submitted to Adjudicating Authority, after due compliance with procedural requirements stressed on the importance of adhering to the prescribed timelines, keeping in view the scope and objectiv....
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.... through Justice R F Nariman, noted: "119. The speech of the Hon'ble Minister on the floor of the House of the Rajya Sabha also reflected the fact that with the passage of time the original intent of quick resolution of stressed assets is getting diluted. It is therefore essential to have time-bound decisions to reinstate this legislative intent. It was also pointed out on the floor of the House that the experience in the working of the Code has not been encouraging. The Minister in her speech to the Rajya Sabha gives the following facts and figures: "Now, regarding the Corporate Insolvency Resolution Process (CIRP), under the Code, I want to give you data again as of 30-6-2019. First, I will talk about the status of CIRPs. Number of admitted cases is 2162; number of cases closed on appeal, which I read out about, is 174; number of cases closed by withdrawal under Section 12-A, is 101, I have given you a slightly later data; number of cases closed by resolution is 120; closed by liquidation, 475; and ongoing CIRPs are 1292. So, now, I would like to mention the number of days of waiting. I would like to mention here the details of the ongoing CIRPs, along with the timeline....
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....In Innoventive Industries Ltd v. ICICI Bank96 a three judge Bench of this Court observed that "one of the important objectives of the Code is to bring the insolvency law in India under a single unified umbrella with the object of speeding up of the insolvency process". Recently, in Gujarat Urja97 (supra) a three judge Bench of this Court observed that a "delay in completion of the insolvency proceedings would diminish the value of the debtor's assets and hamper the prospects of a successful reorganization or liquidation. For the success of an insolvency regime, it is necessary that insolvency proceedings are dealt with in a timely, effective and efficient manner". The stipulation of timelines and a detailed procedure under the IBC ensures a timely completion of CIRP and introduces transparency, certainty and predictability in the insolvency resolution process"............................ 17. In the instant case the Resolution Plan was approved by 91.02% of the Members of CoC and is pending approval before the Adjudicating Authority and was last listed for hearing on 16.06.2021. The literal language of Section 12 mandates strict adherence to the time frame it lays down. Time and ag....