Hemant Sharma Resolution Professional ... vs Na

Hemant Sharma Resolution Professional of Global Softech Ltd. ...Appellant

Present: For Appellant: Mr. P. Nagesh and Mr. Ashu Kansal, Advocates.

ORDER

(Through Virtual Mode)

02.11.2020: Prayer for exclusion of time as sought by the Resolution

Professional of the Corporate Debtor - 'Golbal Softech Ltd.' was partially allowed

by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad

Bench, Ahmedabad, Court 2 in terms of impugned order dated 15th October,

2020. While the Appellant - Resolution Professional had sought exclusion of

period of lockdown w.e.f. 25th March, 2020 to 15th September, 2020, the learned

Adjudicating Authority allowed exclusion of only 68 days w.e.f. 23rd March, 2020

to 31st May, 2020 on the ground that the lockdown period in the State was

declared only for such period. The Adjudicating Authority also took note of the

fact that the first 180 days period inclusive of lockdown period had expired on

24th July, 2020. Thus, the application came to be partially allowed.

2. Shri P. Nagesh, Advocate appearing for the Appellant submits that the

lockdown restrictions did not terminate on 31st May, 2020 as noticed by the

Adjudicating Authority in the impugned order. It is submitted that the

Cont'd..../ -2-

Registered Office of the Corporate Debtor is located in Union Territory of Dadra

and Nagar Haveli and its Corporate Office is situated in the State of Maharashtra,

where lockdown restrictions continued till 15th September, 2020 and no

business/commercial activities could be undertaken. It is further submitted

that two Prospective Resolution Applicants had responded to the Expression of

Interest and they wanted some time to file Resolution Plans but imposition of

lockdown due to COVID-19 pandemic on 23rd March, 2020 resulting in

disruption of commercial activities no progress could be achieved in the

Corporate Insolvency Resolution Process. It is submitted that the object of the

I&B Code would be defeated if the Resolution Process is allowed to be scuttled

for the reasons weighing with the Adjudicating Authority, moreso, as the

lockdown restrictions specific to the areas where the Registered Office and

Corporate Office of the Corporate Debtor are situated continued upto 15th

September, 2020.

3. Annexure A-9 forming page 62 of the appeal paper book is copy of the

order passed by the Government of Maharashtra which brings it to fore that the

lockdown restrictions were extended in the entire state of Maharashtra till 30th

September, 2020. Annexure A-8 forming page 61 of the appeal paper book is an

order passed by the U.T. Administration of Dadra & Nagar Haveli and Daman &

Diu, which shows that the lockdown restrictions were extended upto 31st August,

2020. Having heard learned counsel for the Appellant and after perusing the

Company Appeal (AT) (Insolvency) No. 942 of 2020 -3-

record, we are convinced that the ground projected for exclusion of the lockdown

restriction period from 25th March, 2020 till 15th September, 2020 has substance

and same deserves to be allowed, so as to make the resolution process

meaningful and result oriented. We accordingly allow this appeal and set aside

the impugned order with direction that the period commencing from 25th March,

2020 till 15th September, 2020 shall be excluded while computing the period of

180 days for the purpose of bringing the Corporate Insolvency Resolution Process

to its logical conclusion. To remove any ambiguity, it is clarified that the

extended period of 90 days beyond 180 days shall commence only after the

prescribed period of 180 days after exclusion of aforesaid period in terms of this

judgment is over. Appeal alongwith I.A. Nos. 2563/2020, 2564/2020 and

2565/2020 stands disposed of.

4. A copy of this order be sent to the Adjudicating Authority (National

Company Law Tribunal), Ahmedabad Bench, Ahmedabad, Court-2 for

information and necessary action.

[Justice Bansi Lal Bhat] Acting Chairperson

[Justice Anant Bijay Singh] Member (Judicial)

[Dr. Ashok Kumar Mishra] Member (Technical) am/gc

Company Appeal (AT) (Insolvency) No. 942 of 2020