NCLAT extends the CIRP period beyond 330 days – Vivek Raheja, Resolution Professional- NCLAT New Delhi
The CIRP of the Corporate Debtor had commenced from 26.02.2020 and due to lockdown i.e. from 25.03.2020 only one meeting was convened i.e. on 02.04.2020. Further, during unlock 3.0 ending 31.08.2020 the second and third meetings were convened on 09.06.2020 and 26.08.2020. Even after lapse of almost a year from the date of commencement of CIRP the process is at nascent stage. While so, the Appellant field an I.A. before the Adjudicating Authority on 27.09.2020 under Section 22(3)(b) of the Code and the said Application was pending for 123 days till the I.A was disposed of on 27.01.2021. Adjudicating Authority excluded only 97 days from the CIRP Period. As per the provisions of the Code the CIRP should be completed within a period of 330 days from the date of commencement of CIRP.
However, in the present case the 330 days ended on 21.01.2021 and if 97 days are applied 54 days already stand exhausted. The present RP is just left with 43 days only. It is submitted that the 43 days period is too insufficient to steer the CIRP to a successful conclusion.
