Exclusion of Time of CIRP helps to revive operations of Corporate Debtor, such exclusion must be allowed: NCLT [Read Order]

The Delhi Bench National Company Law Tribunal (NCLT) has held that exclusion of time of CIRP helps to revive operations of Corporate Debtor, such exclusion must be allowed.

The appellant has stated that the exclusion of 90 days from the CIRP of the CD would save the company from ‘Liquidation’. It was also pointed out by the ld. Counsel that there was a ‘Prospective Resolution Applicant’ who has submitted his ‘Resolution Plan’ & there is likelihood for revival of the CD. Due to prevalent pandemic, there was not much progress in the detachment of property from ED at Tribunals/Courts.

The CoC has also considered reissue of ‘Expression of Interest’ (EOI) and hence there is a need for exclusion of such period. The Ld counsel has also pointed out that the Appellant was perusing legal proceedings to get attachment of sole property of the CD lifted before various judicial forum to get the property released as early as possible and also cited the judgement of Hon’ble Apex Court in the case of ‘Committee of Creditors of Essar Steel India Limited vs. Satish Kumar Gupta’ wherein it has held that the ‘Adjudicating Authority or the Appellate Authority has discretion to extend the time of CIRP period even beyond 330 days in certain exceptional cases’. This is an exceptional case as revealed from the submissions by the Ld counsel for the Appellant. No doubt, CBI and ED have attached the sole property of the CD and the matter is under adjudication.

The coram of Judicial Member, Justice M.Venugopal and Technical Member, Dr. Ashok Kumar Mishra has held that tf granting of 90 days helps the Corporate Debtor to revive, then the basic objective of the I&B Code, 2016 will be met. Liquidation is the last resort. Hence, this ‘Tribunal’ is of the subjective opinion that no prejudice will be caused in allowing the instant appeal to prevent an aberration of justice and to promote substantial cause of justice.

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