CIRP MODEL TIMELINE

https://www.linkedin.com/posts/solacelawpractice_key-judicial-decisions-shaping-indias-insolvency-ugcPost-7370545804538925056-vOg3?utm_source=share&utm_medium=member_ios&rcm=ACoAAApEPNoBTFi0fpTgPz-Eq2xG7bUnGp0oNWc

*Important decision of Hon’ble Supreme Court in the matter of Committee of Creditors of Essar Steel India Limited Through Authorised Signatory Vs. Satish Kumar Gupta & Ors. where the Court held that while leaving the provision otherwise intact, the term “mandatorily” is struck down as being manifestly arbitrary under Article 14 of the Constitution of India and as being an unreasonable restriction on the litigant’s right to carry on business under Article 19(1)(g) of the Constitution.

·      If the matter was pending before the Hon’ble High Court or before the Hon’ble Supreme Court and because of interim order of stay, the matter could not proceed, it is a fit case for exclusion of certain period u/s 12 – R.P. of SEL Manufacturing Company Ltd. Vs. Committee of Creditors of SEL Manufacturing Ltd. & Ors. 

·      NCLAT cannot extend CIRP beyond 270 days except advice for Sec. 230 of Companies Act, 2013 – Alliance Projects Vs. RP of Ind-Barath Power (Madras) Ltd. 

·      Only one Resolution Plan submitted before the consideration of the CoC has not been seriously dealt with in the time frame, no further extension beyond 270 days is to be granted in the like case – State Bank of India Vs. Coastal Projects Ltd.

·      In Ritu Rastogi RP of Benlon India Ltd. Vs. Riyal Packers [2020], NCLAT held that this is a fit case for exercising the jurisdiction by this Appellate Tribunal being an exceptional case to depart from the general rule of 330 days being the outer limit prescribed under the law for completion of the CIRP inclusive of period of judicial intervention. We are also of the considered opinion that failure to exercise discretion in a matter of this nature would have serious implications imperiling the legitimate interests of all stakeholders and the inevitable conclusion would be to push the Corporate Debtor into liquidation which has to be avoided at all costs.

[AA: Adjudicating Authority; AR: Authorised Representative; CIRP: Corporate Insolvency Resolution Process; CoC: Committee of Creditors; EoI: Expression of Interest; IRP: Interim Resolution Professional; RA: Resolution Applicant; RP: Resolution Professional; Reg: Regulation.]