In the matter of TAVAS Construction Private Limited

IN THE NATIONAL COMPANY LAW TRIBUNAL, DIVISION BENCH – I, CHENNAI IA/165/2020 in CP/1144/IB/2018 (filed under Sections 12, 25 and 60 (5) of the IBC, 2016 r/w Rule 11 of NCLT Rules, 2016). In the matter of M/s. TAVAS Constructions Private Limited S.R. Krishnan, Resolution Professional (IRP), TAVAS Constructions Private Limited, Having Office at : 6, Khabag Castle, 3B, Circular Road, Kodambakkam, Chennai 600 024. … Resolution Professional / Applicant

Order pronounced on 16th April 2021

CORAM : R. VARADHARAJAN, MEMBER (JUDICIAL) ANIL KUMAR B, MEMBER (TECHNICAL) For Applicant / RP : Anant Merathia, Advocate

Per: R. VARADHARAJAN, MEMBER (JUDICIAL) 1. The present Application is filed by the Resolution Professional of M/s. TAVAS Constructions Private Limited under Sections 12, 25 and 60 (5) of IBC, 2016 r/w Rule 11 of NCLT Rules, 2016 seeking reliefs as follows:- i. The Hon’ble Tribunal may be pleased to grant an exclusion of time period from 25.03.2020 till 31.12.2020 or such period that this Hon’ble Tribunal deems fit and proper that is lost during the lockdowns and restrictions imposed by the state and central governments as explained supra from the Corporate IA/165/2020 in CP/1144/IB/2018 M/s. TAVAS Constructions Private Limited

Insolvency Resolution Process period of the Corporate Debtor;

ii. To pass such other orders or directions as this Hon’ble Bench may deem fit and proper in the facts and circumstances of the case.

2. It is averred in the Application that the Corporate Insolvency Resolution Process (CIRP) in relation to the Corporate Debtor viz., M/s. TAVAS Constructions Private Limited was initiated by this Tribunal on 11.03.2020 in CP/1144/IB/2018 and the Applicant herein was appointed as Interim Resolution Professional (IRP) and thereafter in the 1st Committee of Creditors (CoC) meeting held on 12.06.2020, the Applicant was subsequently appointed as the Resolution Professional (RP) of the Corporate Debtor.

3. Pursuance of his appointment as the IRP, the Applicant had caused public announcement on 15.03.2020 and invited the claims to be filed by the Creditors in relation to the Corporate Debtor.

4. Learned Counsel for Applicant / RP submits that the CIRP in relation to the Corporate Debtor was initiated on 11.03.2020 and immediately due to outbreak of the Covid-19 pandemic and the attendant lockdown imposed by the State / Central Governments from March 2020, the Applicant was unable to carry on with the CIRP proceedings in relation to the Corporate Debtor.

IA/165/2020 in CP/1144/IB/2018 M/s. TAVAS Constructions Private Limited

5. It was also submitted by Learned Counsel for Applicant / RP that he is not in a position to hold any CoC meetings as originally planned physically and the CoC meetings were conducted only through electronic means. It is stated that even the 1st CoC meeting was held through video conferencing on 12.06.2020 and thereafter in the 2nd CoC meeting which was held through video conferencing on 18.08.2020 the CoC had approved two Registered Valuers and due to restrictions being imposed in relation to Covid- 19 pandemic the process of valuation of assets of the Corporate Debtor was not carried out and the valuers were not in a position to visit the properties of the Corporate Debtor.

6. Thereafter, it was submitted that in the 4th CoC meeting held on 03.11.2020, the last date for submission of the Resolution Plan was extended till 31.12.2020. Learned Counsel for Applicant / RP submits that the Corporate Debtor is a going concern and has reported a revenue of Rs.2.7 Crore for the year ended 31.03.2020 and there are every prospect of the Corporate Debtor being revived since there is some prospective Resolution Applicants who have expressed their interests in the Corporate Debtor due to its assets, brand name and the earlier goodwill earned by the Corporate Debtor. Under the said circumstances, the Applicant herein prayed for exclusion of period from 25.03.2020 till 31.12.2020 from the CIRP timeline.

IA/165/2020 in CP/1144/IB/2018 M/s. TAVAS Constructions Private Limited

7. Heard the submissions made by Learned Counsel for Resolution Professional. In support of his plea, the Learned Counsel for the Applicant has annexed copy of the Notification issued by the Ministry of Home Affairs, Government of India dated 24.03.2020, 15.04.2020, 01.05.2020, 17.05.2020, 30.05.2020, 29.06.2020 and 29.07.2020. Further the Learned Counsel for the Applicant has also enclosed the Notifications issued by the Tamil Nadu State Government in relation to lockdown being extended in the State of Tamil Nadu dated 31.07.2020, 31.08.2020, 30.09.2020, 31.10.2020 and 30.11.2020.

8. The Learned Counsel for the Applicant also relied upon the order of the Supreme Court of India passed in a Suo Motu Writ Petition (Civil) No.3/2020 dated 08.03.2021 wherein the Hon’ble Supreme Court has excluded the period from 15.03.2020 to 14.03.2021 for the purpose of calculating the period of limitation. Further, in the meantime, the Regulator viz. IBBI had introduced an Amendment in the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, so as to exclude the period of lockdown from the CIRP timeline. Regulation 40C of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 states as follows;

40C. Special provision relating to time-line. Notwithstanding the time-lines contained in these regulations, but subject to the provisions in the Code, the period of IA/165/2020 in CP/1144/IB/2018 M/s. TAVAS Constructions Private Limited lockdown imposed by the Central Government in the wake of Covid-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process.

9. Thus, from the averments made in the Application and the documents filed in support of the said averments and also by taking into consideration of Regulation 40C of IBBI (Insolvency Resolution Process for Corporate Person) Regulation, 2016 and also in addition there being a possibility of Resolution as averred in the Application by the Applicant, we are of the view that the period from 25.03.2020 till 31.12.2020 is required to be excluded from the CIRP time-line in relation to the Corporate Debtor and accordingly the said period stands excluded and thereby 180 days period of CIRP in relation to the Corporate Debtor will come to an end on 17.06.2021. The Applicant shall make every endeavour to complete the CIRP in relation to the Corporate Debtor within the time-line prescribed under the Code. Accordingly, the Application stands allowed.

ANIL KUMAR B R.VARADHARAJAN MEMBER (TECHNICAL) MEMBER(JUDICIAL)

Raymond

IA/165/2020 in CP/1144/IB/2018 M/s. TAVAS Constructions Private Limited