In the matter of S.R.K. Chemicals Ltd.
- CitationIA/1080(AHM) 2023 in CP(IB) 457 of 2018
Ratio decidendi
The rule this decision rests on
The liquidation period under the Insolvency and Bankruptcy Code may be extended by the Tribunal on an application by the liquidator, and an extension is justified where the liquidator shows grounds for it, here the corporate debtor's holding of certain shares, the Tribunal extending the period by one year from the date on which the earlier period expired. A liquidator's delay in pursuing a filing, including failure to file the physical copy of an application for four months and an unsatisfactory explanation for that delay, does not by itself bar the grant of extension, but the Tribunal may weigh such casualness against the liquidator in deciding whether to grant the relief sought. A prayer for exclusion of the period during which the liquidation period had already expired and the application remained pending is not granted merely because it is sought; the Tribunal declines it, extending the liquidation period only prospectively from the date stated.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ORDER IA/1080(AHM) 2023 This is an application filed by the liquidator vide inward dairy through e-mode on 05.05.2023, for seeking extension of the liquidation period for a further one year from 06.05.2023, till 05.05.2024, as well as seeking exclusion of time period of 23 days with effect from 12.04.2023 to 05.05.2023. It is seen that the liquidation period for this matter was over on 11.04.2023. In the past, an application was filed i.e. IA 56(AHM) 2023 for seeking extension of one year for the liquidation process period, which was allowed on 25.04.2023. However, it is seen that, after filing the inward application on 05.05.20223, no steps were taken by the applicant / liquidator for listing this application as no physical copy was filed and matter remained pending in scrutiny with objections altogether for four months. The physical copy was filed only 29.09.2023 vide inward, dairy No. 872. During the hearing, no satisfactory answer was given by the Liquidator for the delay of four months in filing the physical copy before this Tribunal. Further, it is required to report to the IPA/IBBI about the monthly status of the liquidation for which he answered that he reported to the IPA/IBBI about the monthly status of the liquidation that matter is pending before the Hon’ble NCLT for seeking extension of liquidation process in the matter. It is also seen that the liquidator in the matter extremely casual in his approach throughout the entire process.
Vinit
We heard the Learned Counsel for the applicant as well as the Liquidator and perused the contents of the application as well as the prayers. The grounds for seeking further extension it is mentioned in para 14 that the company is holding certain shares. Therefore, the liquidation period of the corporate debtor is hereby extended for a further period of one year from 12.04.2023. However, no exclusion is granted as sought by the Applicant. We direct the Registry to forward a copy of this order to the IPA of which the liquidator is a member as well as to IBBI for the information and for necessary action, if any. Accordingly, IA/1080(AHM) 2023 is disposed off.
-sd- -sd- SAMEER KAKAR SHAMMI KHAN MEMBER (TECHNICAL) MEMBER (JUDICIAL)
Vinit
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