Cosmopolitan Technofab Textiles Pvt. Ltd.

NCLAT held that the time period provided under IBC for completion of CIRP is 180 days as per section 12. If the CIRP is not completed within this time period, an explicit extension order is to be sought from the Adjudicating Authority, which can be of maximum of 90 days. From the averments made by the Resolution Profession and the arguments submitted before us, we do not find that after the expiry of 180 days from the date of commencement of CIRP, the Resolution Professional obtained approval of the CoC to file an application for extension of CIRP. Moreover, he never filed any application for extension of CIRP and waited for a decision on his section 19(2) application. Section 19(2) application was neither for exclusion of time period nor for extension of time period. We are of the very clear opinion that since the Resolution Professional could not receive any order in action with section 19(2) application, he should have filed an application for extension of CIRP as required under section 12, after a lapse of 180 days from the commencement of CIRP, after due approval of CoC. All this is requirement under Law, which cannot be lost sight of, and the Resolution Professional has been remiss in carrying out his responsibilities as per provisions of IBC. In such a situation, we find that he is seeking extension of time period of CIRP in the garb of “exclusion of time period” which cannot be permitted.