NCLAT Delhi: Adjudicating Authority Should Grant Extension Of Time To Consider Resolution Plan Crucial To Fulfill Object Of IBC
The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the Adjudicating Authority ought to have granted an exclusion/extension of time when the Resolution Plan received in the process was required to be considered to fulfill the object of...
The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the Adjudicating Authority ought to have granted an exclusion/extension of time when the Resolution Plan received in the process was required to be considered to fulfill the object of the IBC.
Background Facts:
Nimai Gautam Shah, Resolution Professional ('RP') of Sintex Plastics Technology Ltd. (Corporate Debtor) filed an application for exclusion of 90 days following CoC's resolution of the CoC dated 25.10.2023. Three Resolution Plans were received and at a certain time was pleaded to consult legal counsel to obtain a legal opinion and get agreements drafted.
NCLT via Order dated 18.12.2023 had rejected the application observing that no ground exists for excluding the period of CIRP. The present appeals were filed against NCLT's Order praying
to exclude 3 months/90 Days from the CIRP period of the Corporate Debtor.
NCLAT Verdict:
The NCLAT Delhi disposed of the appeal and held that the Adjudicating Authority ought to have granted an exclusion/extension of time when the Resolution Plan received in the process was required to be considered to fulfill the object of the IBC.
The Appellate Tribunal observed that the mere fact that earlier Interim RP was also competent to carry out the process but it was not done, was not relevant consideration.
In conclusion, it granted an extension of 60 days' period from the date of the Order to complete the entire CIRP process setting aside NCLT's Order.
Case Title: Nimai Gautam Shah, Resolution Professional of Sintex Plastics Technology Ltd. vs. RBL Bank Ltd.
Case No.: Company Appeal (AT) (Insolvency) No.82 of 2024
Counsel for Appellant: Mr. Naveen Pahwa, Sr. Advocate with Mr. Dheeraj Garg, Advocate.
Counsel for Respondent: Mr. Chitranshul Sinha