CIRP Regulations 35A is not mandatory and the requirement for approaching the Adjudicating Authority for appropriate relief on or before 135th day of the Insolvency Commencement Date is only directory – Jagdish Kumar Parulkar, RP of M/s Tayal Foods Pvt. Ltd. Vs. Vinod Agarwal Ex-Director, M/s Tayal Food Pvt. Ltd. – NCLAT New Delhi
February 20, 2023
NCLAT held that it is commonsensical axiom that the time taken by a Resolution Professional to determine an avoidance transaction is dependent on a multitude of factors, including availability of information, co-operation from the erstwhile directors of the Corporate Debtor, cooperation from parties to the avoidance transactions, analysis by the transaction auditor, etc. Such factors often being outside the control of the Resolution Professional, there is therefore a distinct possibility of delay in making a determination, beyond the timelines specified in the CIRP Regulations.
