Ajay Agarwal vs Shantanu T.Ray Rp Of Aml Steel And Power ...
- CitationCompany Appeal (AT) (Insolvency) No. 61 of 2019
Ratio decidendi
The rule this decision rests on
The exclusion of time from the Corporate Insolvency Resolution Process period is warranted where the delay in selecting a resolution applicant results from the lack of financial information and cooperation from the promoters or directors of the corporate debtor, and from the restriction on the resolution professional's visits to the company's premises in an area that is Naxalite-infested, such that the resolution professional cannot effectively act without police support.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Ajay Agarwal ...Appellant
Vs
Shantanu T. Ray, RP of ....Respondents AML Steel and Power Ltd. & Ors.
Present: For Appellant: Mr. Aditya Narayan, Advocate. For Respondents: ORDER
18.01.2019: Mr. Aditya Narayan, Advocate appears on behalf of the
Appellant - 'Ajay Agarwal' who happens to be the Promoter and one of the
Directors of the suspended Board of Directors of M/s AML Steel and Power Ltd.
(Corporate Debtor) and seeks to assail the impugned order dated 11th December,
2018 passed by the learned Adjudicating Authority (National Company Law
Tribunal) Division Bench, Chennai, by virtue whereof the learned Adjudicating
Authority has excluded 90 days from the Corporate Insolvency Resolution
Process period with effect from 7th December, 2018.
2. Heard learned counsel for the Appellant and perused the records. The
impugned order has been passed taking into consideration the resolution passed
by the Committee of Creditors seeking exclusion of 90 days from the Corporate
Insolvency Resolution Process period having regard for the fact that the company
premises is located in an area which is Naxalite infested and the Resolution
Professional had been facing immense hardship in visiting premises of the -2-
company without the support of the police. The impugned order is perfectly in
tune with the dictum of this Appellate Tribunal laid down in 'Quinn Logistics
India Private Limited Vs. Mack Soft Tech Private Limited and 2 Ors.', which
elaborately deals with the grounds that warrant exclusion of time from Corporate
Insolvency Resolution Process period to advance insolvency resolution. It
appears that selection of resolution applicant has been delayed on account of
lack of financial information and cooperation from the Promoters/Directors
besides frequent visits to the premises of the company being curtailed/ restricted
on account of area being Naxalite infested.
3. Viewed in this background, I am of the considered opinion that there were
substantial grounds warranting exclusion of 90 days period from Corporate
Insolvency Resolution Process period. I find that the impugned order does not
suffer from any legal infirmity or factual frailty. The appeal being devoid of merit,
the same is dismissed. There shall be no orders as to costs.
[Justice Bansi Lal Bhat] Member (Judicial) am/uk
Company Appeal (AT) (Insolvency) No. 61 of 2019
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