TaxTMI 
TaxTMI 
2022 (1) TMI 670
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....ncy) No. 259 of 2021, is to the Impugned Order dated 02.02.2021, passed by the Learned Adjudicating Authority (National Company Law Tribunal, Kolkata Bench) in I.A. No. 1010/KB/2020 in C.P. (IB) No.- 1444/KB/2018 under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the 'Code'). By the Impugned Order, the Learned Adjudicating Authority has dismissed the I.A. No. 1010/KB/2020 preferred by M/s. CRPL Infra Private Limited, the Applicant/Appellant herein against the Resolution Professional/(RP) and the Members of Committee of Creditors (CoC) praying to set aside the resolution passed at the 12th COC Meeting held on 10.09.2020, on the ground that the CoC had rejected the Applicant's request for extension of time to submit the Resolution Plan and to consider the Resolution Plan proposed to be submitted by the Applicant/Appellant herein. 2. While dismissing the I.A., the Adjudicating Authority has observed as follows: "18. This is a case where the CIRP had commenced on 21.11.2019, the first invitation to EoI was published on 18.01.2020. The last date of submission of resolution plan had been extended four times at the instance of prospecti....
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....par with others and opportunity to participate in the meetings was given to them. In our considered opinion, neither the decision of the CoC nor of the RP was unreasonable or arbitrary. Therefore, this Adjudicating Authority is neither inclined towards quashing and setting aside the resolution passed at the twelfth CoC meeting of the Corporate Debtor held on 10.09.2020 to the extent that it rejects the Applicant's request for extension of time to submit its resolution plan nor inclined towards directing the RP and the CoC to consider the resolution plan proposed to be submitted by the Applicant." 3. Submissions of the Learned Counsel appearing on behalf of the Appellant: Learned Counsel for the Appellant vehemently contended that during the CoC Meeting on 03.09.2020, all the Resolution Applicants agreed for adjournment to file the revised Resolution Plan. On 08.09.2020, the RP sent an email conveying that the 10th COC Meeting would take place on 10.09.2020, without stating the agenda and giving only two days time which is not in conformity with Section 19 of the Code. On 08.09.2020 itself the Appellant addressed an email to the RP seeking 10-15 days extra t....
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.... endeavor to expeditiously formalize and finalize the Resolution Plan; ...... Our Government, various legislations and Courts across the Country have adopted a sympathetic approach and have duly extend timelines which were unable to be met as a result of the Pandemic Covid-19. In fact, as you are aware, the Insolvency and Bankruptcy Board of India vide notification dated 29th March 2020 inserted Regulation 40C which states as below:- "40C. Special provision relating to time-line. Notwithstanding the timelines contained in these regulations, but subject to the provisions in the Code, the period of lockdown imposed by the Central Government in the wake of COVID19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process." 4. Submissions of the Learned Counsel appearing on behalf of the Respondent No. 1/Resolution Professional (RP): The RP in consonance with the CoC Members extended the time for submission of the Resolution Plan four times i.e., 01.04.2020 till 31.07.2020 (120 days). The RP in the 8th CoC Meeting held ....
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....s taken control over the ownership and management of the 'Corporate Debtor Company'. The Plan has been implemented. The RP in support of their case relied on the following Judgements: "Arcelor Mittal India Private Limited' Vs. "Satish Kumar Gupta', (2019) 2 SCC 1. "Committee of Creditors of Essar Steel India Limited' Vs. "Satish Kumar Gupta', 2019 SCC OnLine SC 1478, Para 54. "K Sashidhar' Vs. "Indian Overseas Bank & Ors.', 2019 SCC OnLine SC 257, Para 52, 55, 57, 58 & 64. "Maharashtra Seamless Limited' Vs. "Padmanabhan', Civil Appeal No. 4242 of 2018, Para 28. "Swiss Ribbons Pvt. Ltd. & Anr.' Vs. "Union of India', 2019 SCC OnLine SC 73, Para 82-84. 5. Submissions of the Learned Counsel appearing on behalf of the Respondent No. 8/Successful Resolution Applicant: The Resolution Plan has already been implemented and all the old Directors of the Company have resigned and the new Directors were appointed. Bankers have released their charges on the assets of their Company. The Successful Resolution Applicant has invested huge amounts on Purchase of Equipment, Repair of Machinery, Revival of Plant at Dheruheda. Th....
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....orporate 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 [sixty-six] per cent. of the voting shares. 9. Sub-Section (3) of Section 30 of the Code provides that the RP shall present the Resolution Plans, which conform to the requirement of Section 30, before the CoC for approval. After considering the feasibility and viability, as stipulated under sub-Section (4) of Section 30, the CoC may approve the Resolution Plan by a vote not less than 66%. The Hon'ble Supreme Court in 'Ebix Singapore Private Limited' Vs. 'Committee of Creditors of Educomp Solutions Limited & Anr.' 2021 SCC OnLine SC 707, in para 142 discussed the importance of adherence to timelines and it is relevant to reproduce the observations: 142 As noted above, Section 12 of the IBC stipulates the timeline within which the CIRP is to be completed. The RP on the instructions of the CoC may make an application for extension of the CIRP. Regulation 40A of the CIRP Regulations provides a detailed model timeline for CIRP which accounts for all the procedural eventualities that are permitted by t....
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....on 35-A RP to form an opinion on preferential and other transactions Within 75 days of the commencement T+75 RP to make a determination on preferential and other transactions Within 115 days of commencement T+115 RP to file applications to AA for appropriate relief Within 135 days of commencement T+135 Regulation 36 (1) Submission of IM to CoC Within 2 weeks of appointment of RP, but not later than 54th day of commencement T+54 Regulation 36-A Publish Form G Within 75 days of commencement T+75 Invitation of EoI Submission of EoI At least 15 days from issue of EoI (Assume 15 days) T+90 Provisional List of RAs by RP Within 10 days from the last day of receipt of EoI T+100 Submission of objections to provisional list For 5 days from the date of provisional list T+105 Final List of RAs by RP Within 10 days of the receipt of objections T+115 Regulation 36-B Issue of RFRP, including Evaluation Matrix and IM Within 5 days of the issue of the provisional list T+105  ....
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..... The Adjudicating Authority's jurisdiction is circumscribed by Section 30(2) of the Code. In this context, the decision of this court in K. Sashidhar (supra) is of great relevance...... 45. Indubitably, the inquiry in such an appeal would be limited to the power exercisable by the resolution professional under Section 30(2) of the I&B Code or, at best, by the adjudicating authority (NCLT) under Section 31(2) read with 31(1) of the I&B Code. No other inquiry would be permissible. Further, the jurisdiction bestowed upon the appellate authority (NCLAT) is also expressly circumscribed. It can examine the challenge only in relation to the grounds specified in Section 61(3) of the I&B Code, which is limited to matters "other than" enquiry into the autonomy or commercial wisdom of the dissenting financial creditors. Thus, the prescribed authorities (NCLT/NCLAT) have been endowed with limited jurisdiction as specified in the I&B Code and not to act as a court of equity or exercise plenary powers................................................................... 48. Thus, it is clear that the limited judicial review available, which can in no circumstance trespass upon a ....