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Judgment
This is an Application by the Resolution Professional of the Corporate Qebtor filed under section 12(2) and 12(3) of the Insolvency & Bankruptcy
Code, 2016 (Code for short) seeking extension of the period of Corporate Insolvency Resolution Process (CIRP).
The brief facts leading to the Application are that this Tribunal by an order dated 23.09.2019 directed initiation of the CIRP of the Corporate
Debtor. Upon commencement of CIRP, IRP in terms of Regulation 6 of CIRP Regulations made public announcement of initiation of CIRP on
27.09.2019 and invited claims along with relevant proof in respect thereof from the creditors to be submitted in the prescribed format on or before
09.10.2019. IRP received claims in the requisite forms from various creditors and consolidated all the claims and prepared the list of creditors who had
submitted the claims. The claims received from Financial Creditor till 16.10.2019 were verified by IRP and accordingly, Committee of Creditors (CoC)
was constituted. IRP convened the first meeting of CoC on 22.10.2019, further 4th CoC meetings have been convened on 06.12.2019, 23.12.2019,
31.01.2020 and 24.02.2020. As per Regulation 27 of CIRP Regulations, the RP/Applicant appointed two registered valuers to carry out valuation of
the Corporate Debtor and determine Fair Value and Liquidation Value of the Corporate Debtor. Due to lack of support and co-operation form the
directors/Key managerial personnel of the CD, the Applicant is finding difficult to provide requisite information and documents to the auditor as
required from time to time. Further, the books of accounts of the Corporate Debtor are under the process of getting finalized and audited for the
financial years 2017-18 and 2018-19. The Applicant has filed a non-cooperation application IA No.40/2020 before this Hon'ble Tribunal on 30.01.2020.
The Applicant on 7th December, 2019 published Expression of Interest (EOI) viz. Form G for inviting the Resolution Plans for the Corporate
Debtor from the interested and eligible Resolution Applicants with the approval of CoC by 23.12.2019. As no EOI was received by 23.12.2019, with
the approval of CoC Form G was revised and published twice and the last date of submission of EOI was extended till 13.01.2020 and 24.01.2020
respectively. The Applicant states that during the CIRP period, the Applicant reached out to about 30 potential Resolution Applicants. However due to
downturn in the shipping industry the RP did not receive a positive response from then. The said applicants have also requested the RP for fresh issue
of EOI. After requisite deliberations, the CoC was of the view that in the event, no resolution plan is received from the aforesaid prospective
Resolution Applicants, EOI could again be issued inviting appropriate Resolution Plans.
The Applicant further informed the CoC members that if no resolution plan is submitted and if the RP and CoC members want to explore the
possibility of fresh issue of EOI, then basis the publication of Form G post 09.03.2020 there would be hardly any time available for new Prospective
Resolution Applicant to submit the Resolution Plan by 21.03.2020. Hence, extension of CIRP period of the Corporate Debtor by further 90 days would
be required to carry out the CIRP process of the Corporate Debtor effectively.
The stipulated 180 days period is due to elapse on 21.03.2020. Unless the period of CIRP is extended and the affairs of the Corporate Debtor is
brought to order the CD may have to face liquidation. It is accordingly necessary that the period of CIRP is extended. Hence, the Application seeking
extension by a further period of 150 days.
I have heard the counsel for the applicant as well as the applicant himself. On perusal of the materials available on record, it is clear that the
Corporate Debtor which being run as a going concern has the potential for a successful resolution. There are applicants booting for its Resolution. It is
accordingly imperative that the period of CIRP is extended. The CoC in its 5rd meeting dated 24.02.2020 has resolved to seek extension of the period
of CIRP. Hence ordered.
The Application be and the same is allowed. The period of the CIRP is extended by 90 days with effect from 21.03.2020. The Applicant is directed to
take appropriate and immediate steps in furtherance of the CIRP under the Insolvency and Bankruptcy Code, 2016 and Regulations made there
under. Urgent Certified Copy of this order shall be given to the Applicant on proper application.