Whether maximum time period of 120 days provided for completion of PPIRP under Section 54D of IBC is mandatory and on completion of the time period, the PPIRP has to be terminated and if Resolution Plan is not approved, RP has to file an Application for termination of the PPIRP proceeding – Mr. Vikash Gautamchand Jain RP of Kethos Tiles Pvt. Ltd. – NCLAT New Delhi
In this important judgment, Hon’ble NCLAT has answered the following questions:
(i) Can the interpretation of Section 12 of IBC be made applicable to Section 54D of IBC?
(ii) Is Adjudicating Authority free to exercise its statutory discretion while ordering termination of the proceeding?
(iii) Can Adjudicating Authority refuse termination of PPIRP?
(iv) Whether AA can extend the time period of completion of PPIRP under Section 54D even this Section has the words “shall be completed” and “RP shall, on the day after the expiry of such period, file an Application for termination of PPIRP”?