The Mumbai Bench of the National Company Law Tribunal ( NCLT ) allowed the 116 Days from the corporate insolvency resolution process ( CIRP ) period due to criminal proceedings on plea by ND Studio’s resolution professional ( RP ).
The present Interlocutory Application has been filed by the Applicant/Resolution Professional of the Corporate Debtor seeking exclusion of 116 days from the Corporate Insolvency Resolution Process Period of the Corporate Debtor till the taking over custody of the Studio, which the only asset of the Corporate Debtor.
The Counsel for the Applicant submitted that a First Information Report was lodged against the Resolution Professional and he was not in a position to take custody of the said Asset of the Corporate Debtor on account of Criminal Proceedings lodged against him consequent upon suicide committed by one of suspended directors on account of admission of his company into the CIRP.
A Two-Member Bench comprising Prabhat Kumar, Technical Member and Justice VirendraSingh Bisht, Judicial Member observed that “Considering that the Corporate Insolvency Resolution Process Period as extended by this Bench is expiring on 20.04.2024 and further considering the peculiar facts and extraordinary circumstances of the case and the genuine hardship faced by the Applicant in conducting the Corporate Insolvency Resolution Process, it is expedient in the interest of justice and equity to exclude the period of 116 days i.e., from 04.08.2023 ( date of F .I.R. lodged against the Applicant ) till 28.11.2023 ( date on which the Authorized Person for and on behalf of the Applicant took custody and control of the Studio ) in computation of the Corporate Insolvency Resolution Process Period of the Corporate Debtor and in the larger interest of Resolution/Revival of the Corporate Debtor at large and for the benefit of the stakeholders.”
“Having considered the submissions and considering all the above aspects, this Bench deems it fit and proper to grant exclusion of exclusion of 116 days from the Corporate Insolvency Resolution Process Period of the Corporate Debtor. Now in the normal course, Corporate Insolvency Resolution Process period will come to an end on 14.08.2024. Resolution Professional of the Corporate Debtor is directed to make his best and dedicated efforts to complete the Corporate Insolvency Resolution Process period as expeditiously as possible within this extended Period. Resolution Professional shall file and place on record quarterly Progress Report” the Tribunal noted.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
