Allowed

In the matter of Sarga Hotel Private Limited Ia(Ib) -1658-KB-2022 In C.P (Ib) No.302-KB-2021

NCLT10 Jan 2023

Case brief

AI extract

What is this about?

The NCLT allowed an application by the Resolution Professional to exclude 180 days from the CIRP timeline, which were lost due to pending judicial proceedings regarding corporate debtor property ownership, referencing Essar Steel principles.

What did the court decide?

The application to exclude 180 days from the CIRP timeline is allowed, and the matter is listed for further orders on 08/02/2023.

In the matter of Sarga Hotel Private Limited Ia(Ib)… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL , KOLKATA BENCH (COURT-II)

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KOLKATA

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IA(IB) /1658/KB/2022 In

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C.P (IB) No.302/KB/2021

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An application under section 12 read with Sections 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the National Company Law Tribunal Rules,2016.

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And

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In the matter of :

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Avishek Gupta , Resolution Professional of Sarga Hotel Private Limited .

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… Applicant

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Versus

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Shristi Infrastructure Development Corporation Limited & Another

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…Respondents

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Date of hearing :03/01/2023 Order Pronounced on : 10/01/2023

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Coram:

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Mrs. Bidisha Banerjee, Member (Judicial) Mr. Balraj Joshi, Member (Technical)

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Counsels appeared through Video Conference

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Mr.Saptarshi Saha, Adv.

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Mr.Arindam Mrinal Pal,Adv.

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Mr.Harsh Rathi, Adv.

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Mr. Avishek Gupta,Adv.

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] For petitioner

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] ] ]

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Ms. Manju Bhuteria,Adv.

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Mr. Souvik Mazumdar, Adv.

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Ms .Pooja Mahajan, Adv.

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Ms.Mahima Singh, Adv.

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] For RP

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] ] ]

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Ms.Shreya Mahalwar, Adv. ]

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Mr. Satyaki Mukherjee, Adv. ] For Applicant in IA 1131/2022 2. Ms. Mini Agarwal, Adv. ]

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Mr.Rahul Auddy, Adv.

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Mr.Aditya Gooptu,Adv.

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] Applicant in IA 822/2022

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]

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O R D E R

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Per: Balraj Joshi, Member (Technical)

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IA(IBC)/ 1658/KB/2022 is an application is filed under section 12(2) of the Code , 2016 filed by the RP seeking exclusion of time of the CIRP owing to the time taken in the judicial proceedings for making IA 690/2022.

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It is submitted that the CIRP in the matter was started on 11^th February, 2022. In the CIRP process of the CD progressed as the per laid down scheduled in the regulation 40A, till 15^th July, 2022, when the process was hampered due to filing of an application by SIDCL claiming ownership rights on 3.5.Acres out of 8 Acres, on which the property of the Corporate Debtor stands.

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In view of the SIDCL application, some of the PRAs had sought extension of time for submission of resolution plan. On this ground and in the interest of resolution , an extension of time was granted by the Adjudicating Authority on 2^nd August, 2022 as 180 days of the CIRP got over on 10^th August,2022.

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It is further submitted by the Ld. Counsel for the liquidator, that five resolution plans have been received till 30^th September, 2022.Meanwhile, the matter of the SIDCL claiming the rights over the property of Corporate Debtor travelled to Hon’ble NCLAT who on 12^th October, 2022 dismissed the appeal with the directions to this Adjudicating Authority to consider the matter and dispose of the same as earliest as possible.

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In view of the pending litigation on this accord, an extension from 270 to 330 days was also sought vide IA No. 1376/ 2022 which was granted on 12^th November, 2022 and the time was enlarged to 7^th January 2023 and in order to keep the overall

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enlargement of time within 330 days. The present IA has been filed for exclusion of time consumed in the adjudication of SIDCL application.

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6. Under section 12(2) of the Code, the resolution process of a corporate debtor should be completed within 330 days of the insolvency commencement date. The Hon’ble Supreme Court has held that while the general rule is that 330 days is the outer limit within which resolution of corporate debtor must take place, however, in exceptional cases, the period of CIRP of a corporate debtor can be extended even beyond 330 days, if it can be shown that it is the interest of all stakeholders that the corporate debtor be put back on its feet instead of being sent into liquidation.[ Ref: Committee of Creditors of Essar Steel India Limited Through Authorised Signatory v Satish Kumar Gupta and Ors,(2020) 8 SCC 531 (Para 127).

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In view of the forgoing, we hereby exclude the time 180 days from the time. Since the further enlargement of time would dependent upon the disposal of SIDCL application bearing IA No. 690/KB/2022,the same be listed on 08/02/2023 .

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