Expressions Of Interest Submitted After CIRP Due Date Cannot Be Considered: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench of Shri Kuldip Kumar Kareer (Judicial Member) and Shri Anil Raj Chellan (Technical Member) held that no Expressions of Interest (EOIs) can be considered if they are submitted after the due date as provided under regulation 36A of the CIRP Regulations.Brief FactsM/s. Jogeshwari Breweries Pvt. Ltd. (the Corporate Debtor) was admitted into...
The National Company Law Tribunal, Mumbai Bench of Shri Kuldip Kumar Kareer (Judicial Member) and Shri Anil Raj Chellan (Technical Member) held that no Expressions of Interest (EOIs) can be considered if they are submitted after the due date as provided under regulation 36A of the CIRP Regulations.
Brief Facts
M/s. Jogeshwari Breweries Pvt. Ltd. (the Corporate Debtor) was admitted into insolvency on a petition filed under section 9 of the Insolvency and Bankruptcy Code (IBC) on February 9, 2024. Expressions of interest were invited by the Resolution Professional (RP) from the prospective resolution applicants on May 9, 2024. Mr Vikram Venkatrao Gaikwad (applicant) is alleged to have submitted the EOI on due date through e-mail. Thereafter, physical documents were supplied at the office of RP. However, the RP refused to take physical submission of the documents and insisted that they be sent by post or courier service. By the time, the documents reached the office, the deadline had already expired. The RP rejected the EOI due to expiry of due date.
The applicant filed an interlocutory application in which a direction was sought that the RP should consider the EOI. The RP maintained that since they were submitted after the due date, they cannot be considered as per regulation 36A of the CIRP regulations
NCLT's Analysis
The NCLT found no substance in the application and observed that allegations of the applicant with respect to attempted physical delivery are ambiguous with no evidence in support of the claim. The tribunal further noted that this fact was not even mentioned in the prior mails sent before May 6, 2024.
The tribunal further noted that EOIs clearly prohibited physical submission of the documents. Despite this, documents in physical form were sought to submitted that too after the stipulated date.
The tribunal further noted that the applicant was duly informed by the RP on May 15, 2024 that their EOI would not be considered. Still the present application was filed on June 8, 2024 after other prospective resolution applicants had already submitted their resolution plans.
The tribunal further observed that timeline provided under regulation 36A of the CIRP regulations for submitting the EOIs is mandatory in nature due to the use of the word “shall”. Any contravention of this regulation cannot be permitted as it would create hurdles in the timely resolution of the insolvency.
The tribunal agreed with the rejection of the EOIs by the RP and dismissed the application on the ground that late submission of the EOIs could not be considered.
Accordingly, the present application was dismissed.
Case Title: Mr Vikram Venkatrao Gaikwad v. Mr. Jitendra Palande
Case Reference: IA. No. 3106/2024 In C.P.(IB)/1132(MB)/2023
Court: NCLT, Mumbai
Judgment Date: 15/10/2024