Status as on- 12/08/2022
The Hon’ble Supreme Court vide its judgment in “CoC of Amtek Auto Ltd. Versus Dinkar T. Venkatsubramanian & Ors.” observed that the entire Corporate Insolvency Resolution Process has to be completed within the stipulated period under Section 12 of the Insolvency and Bankruptcy Code, 2016.
As per Section 12 of the IBC, subject to subsection (2), the CIRP shall be completed within 180 days from the date of admission of the application to initiate such process, which can be extended by a further period of 150 (90+60) days. As per proviso to Section 12 of the IBC, the insolvency resolution process shall mandatorily be completed within 330 days from the insolvency commencement date, including any extension of the period of CIRP granted under Section 12 of the IBC.
As per the third proviso to Section 12 of the IBC, where the insolvency resolution process of a Corporate Debtor is pending and has not been completed within a period stated hereinabove, i.e., within 330 days, such resolution process shall be completed within 90 days from the date of commencement of the IBC Amendment Act, 2019, i.e., 16.08.2019. Thus, the entire resolution process has to be completed within the period stipulated under Section 12 of the IBC and any deviation would defeat the object and purpose of providing such a time limit.
Thus, the entire resolution process has to be completed within the period stipulated under Section 12 of the IBC and any deviation would defeat the object and purpose of providing such a time limit. However, by earlier order, the time limit has been condoned given the various litigations pending between the parties and in the peculiar facts and circumstances of the case. Therefore, any further delay in the implementation of the approved resolution plan which as such has been approved by the adjudicating authority in July 2020 and even the appeal against the same has been dismissed subsequently, any further delay would defeat the very object and purpose of providing specific time limit for completion of the insolvency resolution process, as mandated under Section 12 of the IBC.
Any lapse on the part of any of the parties in implementing the approved resolution plan within the time stipulated hereinabove shall be viewed very seriously.
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