| The Tax Publishers 2020 TaxPub(CL) 0041 (NCLAT-Del) INSOLVENCY AND BANKRUPTCY CODE, 2016,
Sections 31, 33, 7 & 61
Where more than 270 days had been elapsed and no case was made out to exclude any period, the Adjudicating Authority had no other option but to pass order of liquidation.
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Approval of resolution plan - Non-implementation of approved resolution plan - Time period of 270 days elapsed - Order of liquidation
CIRP was initiated against the corporate debtor under section 7. NCLT approved the resolution plan of the successful resolution applicant in terms of section 31. However, the approved resolution plan could not be implemented because of the default committed by the resolution applicant. Meanwhile, the total period of 270 days for completion of CIRP was expired. Thus, Resolution Professional and Committee of Creditors sought direction to exclude certain time period from the total period of 270 days in order to make another attempt for a fresh insolvency process. Held: In absence of any extraordinary situation and the fact that more than 270 days had already been passed, there was no ground to exclude any period. Further, once a plan was approved by the Adjudicating Authority under section 31, if it was not implemented, that could not be a ground to exclude any period. Therefore, the Adjudicating Authority would pass appropriate order of liquidation in accordance with the law.
REFERRED : Quinn Logistics India (P) Ltd. v. Mack Soft Tech (P) Ltd. SCC OnLine NCLAT 243, dt. 13-2-2019, Arcelormittal India Private Limited v. Satish Kumar Gupta & Ors. (2018) SCC OnLine SC 1733 : 2018 TaxPub(CL) 1116 (SC) and Y. Shivram Prasad v. S. Dhanapal & Ors. [Company Appeal (AT) (Insolvency) No. 224 of 2018 : 2019 TaxPub(CL) 0586 (NCLAT-Del)]
FAVOUR : In favour of appellant
A.Y. :
IN THE NCLAT, NEW DELHI BENCH
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