In the matter of McNally Bharat Engg Co. Limited
- CitationIA(I.B.C)-848(KB)2023 in C.P. (IB)-891(KB)2020
Ratio decidendi
The rule this decision rests on
The Tribunal, exercising its power on an application under Section 12(2) of the Insolvency and Bankruptcy Code, 2016, may extend the period of the corporate insolvency resolution process beyond the 270-day limit where the Resolution Professional shows that the delay arises from the ongoing resolution process, including a fresh challenge process conducted by the Committee of Creditors in its commercial wisdom in which resolution applicants actively participated, and that such extension is in the interest of justice.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
AnApplicationunder Section12(2) ofInsolvencyandBankruptcy Code,2016; IntheMatter of: Bank ofIndia ….FinancialCreditor And McNally Bharat Engineering Company Limited ….Corporate Debtor McNally Bharat Engineering Company Limited through its ResolutionProfessional, Mr. Ravi Sethia ….Applicant Dateof Hearing:25.05.2023 Dateof Pronouncement oforder: 09.11.2023
Coram: SmtBidisha Banerjee : Member(Judicial) ShriBalrajJoshi : Member(Technical)
Counselappeared physically / through video Conferencing
ForIncome Tax Authority 1. Mr. S.K. Tiwari, Adv.
ForRP 1. Ms. S. Dubey, Adv.
MJ
ORDER Per Bidisha Banerjee, Member (Judicial): 1. Heard theCounsel onfortheRP. 2. This is an application filed by the Resolution Professional seeking extension of CIRP period by60days beyond 270days. 3. Ld. Counsel for the RP submits that the CIRP has been initiated vide order dated 29.04.2022 and IRP was appointed. It is further stated that a public announcement was made on 07.05.2022 in Form ‘A’. It is further submitted that the IRP published Form ‘G’ invitingExpression ofInterest from theprospective resolution applicants on05.07.2022. 4. Ld. Counsel for the RP further submits that this Tribunal vide order dated 26.08.2022 appointed Mr. Ravi Sethia as RP of the Corporate Debtor. It is further submitted that this Tribunal vide order dated 01.11.2022 had extended period of CIRP by 90 days from 31st October, 2022. It is further contended that two Resolution Plans were received from Resolution Applicants on28.02.2023. 5. Ld. Counsel for the RP submits that a challenge process was conducted and the RAs were requested to submit their revised plans on 28.02.2023. It is further contended that the CoC in its commercial wisdom on 10.04.2023 in the 22nd CoC Meeting conducted a fresh challenge process in which RAs actively participated. Further, Ld. Counsel for the Applicant states that the last date was fixed for submission of Resolution Plan was on 20.04.2023. 6. In view of the above facts and circumstances and in the interest of justice, we allow the present. Application of extension of CIRP period by 60 days beyond 270 days on and from 23.04.2023.
MJ
7. With the above directions, this IA(I.B.C)/848(KB)2023 is accordingly allowed and disposed of. 8. Urgent certified copy of this order, if applied for, be issued upon compliance with all requisite formalities.
BalrajJoshi BidishaBanerjee, Member(Technical) Member (Judicial)
Signed onthis the9th day ofNovember,2023
M. Jana, PS
MJ
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