Dreamz Infra India Ltd Through Ashok ... vs Pratap Chandra Padhy
- CitationCompany Appeal (AT) (Insolvency) No. 934 of 2020
Ratio decidendi
The rule this decision rests on
The period of the COVID-19 lockdown, from 25 March 2020 until the relevant date, is to be excluded in computing the 180-day (and extended 90-day) period under the Corporate Insolvency Resolution Process, where the Appellate Tribunal finds on the material produced that the lockdown restrictions rendered the process impracticable and the Adjudicating Authority failed to consider those circumstances in refusing the exclusion. A Tribunal reviewing an Adjudicating Authority's refusal to exclude the lockdown period must consider the documentary material bearing on the restrictions in force, including the extending notifications of the Government of India and the State, the non-operation of inter-city flights, and the increase in containment zones; where it does not, its refusal is liable to be set aside.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: M/s Dreamz Infra India Ltd. 17/13, G.F., Old Rajinder Nagar, New Delhi-110060 Through Shri Ashok Kriplani (R.P.) IIBI/IPA-003/IP-N00009/2016-2017/10071 E-mail: dreamzcirp@gmail.com Ashok.kriplani1956@gmail.com ...Appellant
Versus Pratap Chandra Padhy S/o. Late Biswanath Pathy House no. 64 Srinivasa Nilaya, Ground Floor, 3rd cross, Ashwathnagar, RMV 2nd Stage, Sanjay Nagar Post, Bengaluru-560094, E-mail: Pratap626104padhi@gmail.com Mob: 9845253523 ...Respondent
Present: - For Appellant: Mr. Mahesh chowdhary, Advocate Mr. Ashok Kriplani (RP).
ORDER
(Virtual Mode)
24.02.2021 This Appeal has been preferred by M/s Dreamz Infra India
Ltd. through Shri Ashok Kriplani (Resolution Professional) being aggrieved
and dissatisfied by the order dated 16.09.2020 passed in I.A. No. 308 of 2020
in C.P. (IB) No. 84 /BB/2019 under Section 60(5) of the Insolvency and
Bankruptcy Code, 2016, read with Rule 11 and 32 of the NCLT Rules 2016
by the Ld. Adjudicating Authority, National Company Law Tribunal,
Bengaluru Bench whereby aforesaid I.A., Ld. Adjudicating Authority have only
granted exclusion of time for a period of 68 days i.e. from 25.03.2020 to
31.05.2020 from the statutory period of 180 days Plus 90 days in place of -2-
excluding time period of 195 days from 16th May, 2020 to 16th September,
2020 which was period of Lockdown.
2. The Appeal was heard on 17.02.2021 the Learned Counsel for the
Appellant was directed to bring on record any order / circular / notification
issued by Govt. of India and State of Karnataka to extend the period of
lockdown in a particular area.
3. The Learned Counsel for the Appellant has filed these documents,
which is taken on record.
4. Learned counsel for the Appellant while relying on the orders passed by
this Appellate Tribunal on 02.11.2020 in Company Appeal (AT) (Insolvency)
No. 942 of 2020 'Hemant Sharma, Resolution Professional of Global Softech
Ltd.' whereby similar circumstances had arisen, this Appellate Tribunal has
granted the exemption period commencing from 25th March, 2020 till 15th
September, 2020. Whereby the aforesaid period of 25th March, 2020 till 15th
September, 2020 excluded while computing the period of 180 days for the
purpose of bringing the 'Corporate Insolvency Resolution Process'. Similar
orders have also been passed on 15.12.2020 in Company Appeal (AT)
(Insolvency) No. 1067 of 2020 and submitted that the matter was also covered
by aforesaid judgments.
5. Learned Counsel for the Appellant submits that Notification issued by
Govt. of India at page 25 of the Additional Documents extending the lockdown
till 31st August, 2020 the same has followed by Govt. of Karnataka. He further
submits that Notification issued by Govt. of India at page 29 of the Additional
Documents extending the lockdown period till 30th September, 2020 which
has also been followed by Govt. of Karnataka.
Company Appeal (AT) (Insolvency) No. 934 of 2020 -3-
6. Learned Counsel for the Appellant submits that the Resolution
Professional residing at New Delhi and during this period Bengaluru and New
Delhi flight was not in operational.
7. Learned Counsel for the Appellant referred at page 33 of the Additional
Documents which is the detail issued by Bengaluru Urban Covid-19 War
Room dated 30.09.2020 which shows that number of Containment Zone has
increased during this period.
8. After hearing the Appellant and perusal of the record, we found that Ld.
Adjudication Authority has not considered these aspects of the matter and
rejected the Application for exemption of period of 195 days. We hereby set
aside the order dated 16th September, 2020 passed by Ld. Adjudicating
Authority, National Company Law Tribunal, Bengaluru Bench.
9. The Appeal stands allowed and further it is directed that period from
15th May, 2020 till 16th September, 2020 be excluded in computing the period
of 190 days for the purpose of 'Corporate Insolvency Resolution Process'.
10. The registry is directed to send the copy of this order to Ld. Adjudicating
Authority, National Company Law Tribunal, Bengaluru Bench forthwith.
[Justice Anant Bijay Singh] Member (Judicial)
[Ms. Shreesha Merla] Member (Technical) R.N./ nn /
Company Appeal (AT) (Insolvency) No. 934 of 2020
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