Saturday, 17 October 2020

Poonam Basak, RP for Kings Electronics Pvt. Ltd. - Exclusion of Covid19 - lockdown period

NCLT (V) Mumbai (16.09.2020) on the application of  Poonam Basak, RP for Kings Electronics Pvt. Ltd. [(7) IA/1358/2020 INCP(IB)/2267/MB/2019] permitted to exclude the lockdown period commencing from 30.03.2020 to 31.07.2020 from the calculation of Corporate Insolvency Resolution Process.


Excerpts of the order;

# 1. IA 1358/2020 has been filed u/s.12(2) to exclude the lockdown period commencing from 30.03.2020 to 31.07.2020 from the calculation of Corporate Insolvency Resolution Process.

 

# 2. Attention is drawn of the Bench to an Order of NCLAT, New Delhi [Suo Moto – Company Appeal (AT)(Insolvency) No.01 of 2020 Order dated 30.03.2020] under which the exclusion of CIRP period due to lockdown has been allowed to be excluded, relevant portion reproduced below:-

“Upon requests for urgent listing of cases having been made telephonically to Registrar of this Appellate Tribunal from various persons, who were unable to physically file the same on account of complete lockdown declared by Government with effect from 25th March, 2020, we take suo moto cognizance of the unprecedented situation arising out of spread of COVID 19 virus declared a pandemic. Having regard to the hardships being faced by various stakeholders as also the legal fraternity, which go beyond filing of Appeals/ cases, which has already been taken care of by the Hon’ble Apex Court by extending the period of limitation with effect from 15th March, 2020 till further order/s in terms of order dated 23rd March, 2020 in Suo Motu Writ Petition (Civil) No(s).03/2020, inasmuch as certain steps required to be taken by various authorities under Insolvency and Bankruptcy Code, 2016 or to comply with various provisions and to adhere to the prescribed timelines for taking the ‘Resolution Process’ to its logical conclusion in order to obviate and mitigate such hardships, this Appellate Tribunal in exercise of powers conferred by Rule 11 of National Company Law Appellate Tribunal Rules, 2016 r/w the decision of this Appellate Tribunal rendered in “Quinn Logistics India Pvt. Ltd. vs. Mack Soft Tech Pvt. Ltd. in Company Appeal (AT)(Insolvency) No.185 of 2018” decided on 8th May, 2018 do hereby orders as follows:

 

- (1) That the period of lockdown ordered by the Central Government and State Governments including the period as may be extended either in whole or part of the country where the registered office of the Corporate Debtor may be located, shall be excluded for the purpose of counting of the period for ‘Resolution Process under Section 12 of the Insolvency and Bankruptcy Code, 2016, in all cases where ‘Corporate Insolvency Resolution Process’ has been initiated and pending before any Bench of the National Company Law Tribunal or in Appeal before this Appellate Tribunal.”

 

3. Accordingly, this Bench “Allows” the IA 1358/2020 as prayed by the Applicant.

 

Disclaimer: The sole purpose of this blog is to create awareness on the subject and must not be used as a guide for taking or recommending any action or decision. A reader must do his own research and seek professional advice if he intends to take any action or decision in the matters covered in this blog.


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Disclaimer:

The sole purpose of this post is to create awareness on the "IBC - Case Law" and to provide synopsis of the concerned case law, must not be used as a guide for taking or recommending any action or decision. A reader must refer to the full citation of the order & do one's own research and seek professional advice if he intends to take any action or decision in the matters covered in this post.