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SUSMITA PHUKAN KHAUND, SANDEEP MEHTA
Purshottam Gaggar, (Resolution Professional of Corporate Debtor, RSH Agro Products Ltd. ) – Appellant
Versus
Dyna Roof Private Ltd. , Represented by its Director Saurabh Agarwal – Respondent
JUDGMENT :
(Sandeep Mehta, J.)
The instant intra-Court writ appeal takes exception to the judgment and final order dated 22.12.2022, passed by the learned Single Bench, whereby writ petition, being WP(C) No.6003/2022, preferred by the respondent Nos.1 and 2 herein (writ petitioners) challenging the order dated 25.08.2022, passed by the National Company Law Tribunal (in short, NCLT), Guwahati Bench in IA(IBC) No.60/GB/2022 in C.P.(IB) NO.18/GB/ 2021, granting further extension of 30 days (beyond the 270 days already availed), was accepted.
2. The learned Single Judge, after consideration of the material placed on record, held that the provisions contained in Section 33 of the Insolvency and Bankruptcy Code, 2016 (in short, IBC of 2016) were mandatory and the NCLT had no jurisdiction to extend the limitation for completion of the Corporate Insolvency Resolution Process (hereinafter, for short, referred as the CIRP) beyond the statutory period as prescribed under Section 12 of IBC of 2016.
3. For better appreciation of the controversy, the provisions contained in Section 12 of the IBC of 2016, are reproduced hereinbelow for the sake of ready reference:
The main legal principle established is that the provisions of Section 12 of the Insolvency and Bankruptcy Code, 2016 are mandatory, and any extension of the Corporate Insolvency Resolution Process s....
PIRP extendable beyond 180-day moratorium limit under Section 101 IBC, which cannot be extended; Regulation 19 timelines directory, enabling adjudication of creditor-approved repayment plans.
Extensions of time for insolvency resolution beyond statutory limits can be granted when stakeholder interests justify such measures, reaffirming the primary aim of resolution over liquidation.
The court emphasized that stakeholder interests must guide extensions of the insolvency resolution process timelines under the Insolvency and Bankruptcy Code.
The court clarified that 'extension' of time in insolvency proceedings does not equate to 'exclusion' of time, establishing that consolidation of related company petitions is not a recognized process....
NCLT lacks power to extend PIRP moratorium beyond 180 days under S.101(1) IBC.
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