Sudip Bhattacharya Resolution ... vs Na
- CitationCompany Appeal (AT) (Insolvency) No. 858 of 2020
Ratio decidendi
The rule this decision rests on
The period of nationwide lockdown imposed in consequence of the COVID-19 pandemic, from 25 March 2020 to 31 August 2020, is to be excluded in computing the period of the corporate insolvency resolution process, where the hardship occasioned by the lockdown in the corporate debtor's locality warrants such mitigation. Such exclusion is a direction made in the peculiar circumstances of the case and does not operate as a general precedent; it does not alter or interfere with the Adjudicating Authority's power to grant an extension of 90 days, which runs only after the 180-day period, as extended by the excluded lockdown period, has expired.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Present: Mr. Rajshekhar Rao, Mr. Arpan Behl, Mr. Shreeyash U Lalit and Mr. Dhrupad Vaghani, Advocates for Appellant.
Mr. Anshul Sehgal and Mr. Sanjeev Kumar, Advocates for CoC.
ORDER
(Through Virtual Mode)
08.10.2020: Appellant, Resolution Professional of 'Reliance Naval and
Engineering Ltd.' is aggrieved of order dated 20th August, 2020 by virtue whereof
the Adjudicating Authority (National Company Law Tribunal) Ahmedabad
Bench, Court 2 granted extension of 90 days to the Resolution Professional to
complete the Corporate Insolvency Resolution Process (CIRP) beyond 180 days
but declined to exclude the lockdown period on the ground that 90 days period
of extension was still in hand.
2. After hearing Shri Rajshekhar Rao, Advocate representing the Resolution
Professional and Shri Sanjeev Kumar, Advocate representing the Committee of
Creditors, we are of the considered opinion that having regard to the imposition
of lockdown on account of outbreak of COVID-19 declared as pandemic from
23rd March, 2020 to 29th May, 2020 (Nationwide) and the fact that the State of
Maharashtra where the Corporate Office of the Corporate Debtor is stated to be
Cont'd..../ -2-
located has been worst hit with most of the areas declared Red Zone culminating
in extension of lockdown till 31st August, 2020, the hardship was required to be
mitigated by allowing the exclusion as prayed for.
3. We allow this appeal by directing that the period of lockdown w.e.f. 25th
March, 2020 till 31st August, 2020 shall be excluded while computing the period
of CIRP. To avoid any confusion/ambiguity, we make it clear that this direction
will not in any case be construed as interference with the extension of 90 days'
time granted by the Adjudicating Authority, which shall begin only after expiry
of the period of CIRP period of 180 days after excluding the period from 25th
March, 2020 upto 31st August, 2020. With these observations the appeal is
disposed of.
4. We make it clear that this order will not serve as a precedent in all cases
as it has been passed in the peculiar circumstances of instant case.
5. Copy of this order be sent to the Adjudicating Authority for information.
[Justice Bansi Lal Bhat] Acting Chairperson
[Dr. Ashok Kumar Mishra] Member (Technical)
[Shreesha Merla] Member (Technical) am/gc
Company Appeal (AT) (Insolvency) No. 858 of 2020
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