In Re: Sanjay Kumar Mishra And Ors Vs

K. Anantha Padmanabha Swamy, J

Under consideration is an interlocutory Application bearing IA No.453 of 2020 filed by the Applicant/Resolution Professional (in short RP) in the matter of M/s. Transstroy Tirupati Thiruthani Chennai Tolls way sPrivate Limited, u/s. 12(2) & 60(5) of the Insolvency and Bankruptcy Code, 2016, inter-alia seeking the following relief(s):

a) Allow the instant Application and to grant extension of time in completion of Corporate Insolvency Resolution Process of Transstroy Tirupati Tiruthani Chennai Tollsways Private Limited for further period of 40 days upto 28.04.2020 calculated w.e.f. 19.03.2020.

The Applicant herein has filed an Additional Affidavit dated 17.06.2020, in the registry through email, inter-alia seeking as under:-

Allow the instant Application and grant exclusion of period from 19.03.2020 to 30.06.2020 i.e., 103 days from the time period for completion of CIRP of the Corporate Debtor in accordance with Regulation 40C of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations 2016 and consequently grant extension of CIRP period by another 90 days from 01.07.2020 till 28.09.2020.

Brief facts as stated by the Applicant in Application and Additional Affidavit are inter-alia as under:-

a. That this Adjudicating Authority admitted the Application filed under section 7 of the IBC, 2016 vide its order dated 03.06.2019 in CP (IB) No.262/7/HDB/2018 and appointed Mr. G. Madhusudhah Rao as Interim Resolution Professional (IRP). Subsequently, he was replaced by Mr. Sanjay Kumar Mishra as Resolution Professional (RP) in the 1st CoC meeting held on 12.07.2019.

b. That this Adjudicating Authority vide its order dated 25.11.2019, in IA No. 1058 of 2019, extended the period of CIRP for further 90days with effect from 01.12.2019 and further, this Adjudicating Authority vide its order dated 03.03.2020 in IA No.230/2020, allowed for 20 days beyond 270 days of CIRP w.e.f. 29.02.2020 and the same ended on 19.03.2020.

c. That the instant Application is filed by RP on 19.03.2020 seeking extension of time period by another 40 days for completion of CIRP of the Corporate Debtor within 330 days w.e.f 19.03.2020 to 28.04.2020. However, due to outbreak of corona virus (COVID-19) pandemic, the instant IA could not be listed for hearing.

d. That during the period of lockdown, the Applicant has received letter dated 24.04.2020 from the Resolution Applicant i.e. M/s. Bansal Construction Works Private Limited ("Resolution Applicant'7BC WPL") intimating that due to outbreak of Corona virus and taking into account the scenario of close down of tolling operations and its subsequent effects, the resolution plan submitted by the Resolution Applicant shall be revisited and a revised resolution plan shall be submitted in the light of the prevailing circumstances. The Resolution Applicant requested that the Resolution plan to be kept in abeyance till further communication. The Applicant/RP has also received email from M/s. International Asset Reconstruction Company Private Limited ("IARC") on 02.06.2020 wherein, IARC intimated the Applicant regarding its interest in participating in the potential rescue and revival of the Corporate Debtor.

e. That in view of the period lost from 19.03.2020 on account of lockdown and in accordance with regulation 40C of the Insolvency and Bankruptcy Board of India (Corporate Insolvency Resolution Process) Regulations, 2016, the Applicant is seeking exclusion of time period of 103 days i.e. from 19.03.2020 till 30.06.2020, the time period prescribed for completion of CIRP of the Corporate Debtor under Section 12 of the IBC.

f. That the Applicant has considering various factors including the pending submission of revised resolution plan by BCWPL, enabling sufficient time for due diligence, submission of the resolution plan and negotiations with IARC, approval of CoC w.r.t Resolution plan, the members of CoC vide emails dated 17.06.2020 have advised the Resolution Professional/Applicant to approach this Adjudicating Authority to seek extension of 90 days. Therefore, the Applicant is hereby seeking extension of CIRP by a total period of 90 days effective from the end of period of lockdown i.e., 01.07.2020 by this Adjudicating Authority to enable effective resolution of the Corporate Debtor, after excluding the period of lockdown.

g. That in view of the said need of extension of time, the CoC has duly deliberated and passed resolution to make application before this Adjudicating Authority for extending CIRP period by another 40 days in 13th CoC meeting held on 17.03.2020 and the resolutiori was duly passed and approved by 100% of the e-voting share of Financial Creditors as under:

"Resolved further that the Resolution Professional is hereby requested to file a suitable application under section 12(2) to the Adjudicating Authority for seeking approval for extension of the aforesaid insolvency resolution process period of the Corporate Debtor ending on 19lh March, 2020 by a period of Forty days. "

Further on 30.06.2020, Applicant has filed a memo stating that the period from 19.03.2020 to 30.06.2020 be excluded from the CIRP period. The CIRP be extended by 40 days from 01.07.2020 to 09.08.2020.

RP submitted that the present Application is bona fide one and the extension sought for is as provided under Section 12 of Insolvency and Bankruptcy Code, 2016, and to meet ends of justice. Further, no prejudice will be caused to the Parties herein.

Reiterating the above, the counsel for the Applicant prayed to jallow the instant Application.

Heard and perused the record.

The present Application is filed inter-alia seeking extension of 40 days' time period for completion of CIRP in accordance with Section 12 of IB Code, 2016 after excluding period of 103 days lost due to global pandemic COVID-19.

In view of the amendments brought in section 12 of the IBC, 2016 with effect from 16.08.2019, the CIRP shall be mandatorily completed within a period of 330 days from the insolvency commencement date including any extension of the period of the CIRP granted under section 12 of the IBC, 2016. Since, the CIRP period of 180 days has already been extended by another 90 days vide this Adjudicating Authority's order dated 25.11.2019 and by virtue of section 12 of IBC, 2016, a period another 20 days was extended vide order dated 03.03.2020. The period of 270 days + 20 days came to an end on 28.02.2020 and 19.03.2020 respectively.

In view of the above, considering the memo dated 30.06.2020 filed by the Applicant/RP and Resolution of CoC in favour of extension vide its meeting dated 13th CoC meeting dated 17.03.2020, this Adjudicating Authority deems it proper to allow the extension of period of 40 days and accordingly, a period of another 40 days is allowed, to complete the Corporate Ihsolvency Resolution Process within 330 days. The Applicant is hereby directed to take all necessary steps to complete the CIRP within the said period, failing which, the liquidation proceeding will commence.

However, computation of such extension of time period shall be computed in accordance with the Regulation 40C of IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020.

Accordingly, the present Application bearing IA No.453 of 2020 in CP (IB) No.262/7/HDB/2018 is hereby stands disposed of.