The National Company Law Appellate Tribunal (NCLAT) New Delhi has ordered that period of judicial intervention is justifiably required to be excluded while counting and computing the period of Corporate Debtor undergoing Corporate Insolvency Resolution Process (CIRP) period.
The Tribunal was hearing the appeal of Anil Tayal, the resolution professional M/s Horizon Buildcon Pvt. Ltd. He Approached the Appellate Tribunal after his prayer for exclusion of the time period consumed in legal proceedings before the Adjudicating Authority (National Company Law Tribunal) for the purpose of calculation of CIRP period was declined. The adjudicating Authority had given an extension of 30 days beyond the extended time of 330 days for bringing the CIRP to a logical conclusion but had not taken care to exclude the period of judicial intervention, the period spent in pursuing the application and seeking extension for exclusion. The Counsel for the appellant, Mr. Abhishek Anand, had submitted that since the extension was not allowed, the extension granted has virtually proved to be futile and meaningless as the period had expired.
Acting Chairperson Justice Bansi Lal Bhat and Technical Member Dr. Ashok Kumar Mishra allowed the appeal and were of the view that “On a careful consideration of the matter, we are of the considered opinion that the period of judicial intervention w.e.f21st October 2020 till 9th November 2020 (the period covering the time spent in pursuing the extension application in the first instance) and 12th January 2021 to 3rd February 2021 (i.e. the period for which the orders were reserved by the Adjudicating Authority on the application) is justifiably required to be excluded while counting and computing the period of CIRP. We accordingly allow this appeal and direct exclusion of period from 21st October 2020 till 9th November 2020 and 12th January, 2021 to 3rd February 2021 for the purposes of calculation of the CIRP period. The appeal is accordingly disposed off.”