TOPIC: PERIOD OF ABSENCE OF RP TO BE EXCLUDED WHILE COUNTING 270 DAYS
Vandana Garg Vs. Reliance Capital Ltd. & Anr.
[NCLAT, New Delhi, Date of Order- 02.07.2019]
In this case the Appellant who was the ‘Resolution Professional’ of GVR Infra Projects Limited on the instructions from the ‘Committee of Creditors’, moved an application before the Adjudicating Authority, (National Company Law Tribunal, Chennai) for exclusion of 35 days of delay in appointing the ‘Resolution Professional’ in place of the ‘Interim Resolution Professional’ and the period during which different applications were pending. Prayer was rejected by impugned order dated 30th April, 2019. Challenging the order, the instant appeal was preferred.
The point of law questioned in this appeal was whether the period of absence of the Resolution Professional, can be excluded from the count of 270 days or not?
It was the case of the Appellant that no ‘Resolution Professional’ was functioning for a period of 35 days after removal of ‘Interim Resolution Professional’ which resulted delay in proceeding and calling for application from the ‘Resolution Applicant’. It is further submitted that if the period of absence of RP is not excluded then Adjudicating Authority may have to pass order of liquidation.
The NCLAT held that the ‘Corporate Insolvency Resolution Process’ could not proceed in the absence of ‘Resolution Professional’ for 35 days. The case of Appellant being covered by decision of this Appellate Tribunal in “Quinn Logistics India Pvt. Ltd.”, the tribunal allowed the prayer as made in this appeal and excluded the period of 35 days for the purpose of counting 180 days or 270 days of ‘Resolution Process’.
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