Case Note & Summary
The matter before the National Company Law Appellate Tribunal involved an application filed by the Resolution Professional of Arshiya Ltd., seeking a direction to exclude the period for the computation of the Corporate Insolvency Resolution Process (CIRP) while the appeal was pending. The application was prompted by the need to address the implications of the appeal on the timeline of the CIRP. The Tribunal noted that the appeal was fixed for hearing on 07.07.2026 and referenced an earlier order dated 07.04.2026, which had extended the CIRP timeline to 27.06.2026. The Tribunal expressed its view that the CIRP period should not be considered to have concluded on the extended date while the appeal was still pending. The Tribunal indicated that a final decision regarding the extension of time would be made during the hearing of the appeal. Consequently, the application was disposed of with the understanding that the CIRP period would remain active until the appeal was resolved.
Headnote
A) Insolvency Law - Corporate Insolvency Resolution Process - Exclusion of Time - Insolvency and Bankruptcy Code, 2016 - The Resolution Professional sought exclusion of time for CIRP computation due to pending appeal. The Tribunal decided that the CIRP period would not end on the extended date while the appeal remains pending, indicating that the final decision on time extension would be made at the hearing of the appeal. Held that the CIRP period continues until the appeal is resolved (Paras 1-3).
Issue of Consideration
Whether the period of Corporate Insolvency Resolution Process should be excluded while the appeal is pending.
Final Decision
The Tribunal disposed of the application, ruling that the CIRP period would not end on 27.06.2026 while the appeal was pending, with a final decision on time extension to be made at the hearing on 07.07.2026.
Law Points
- Corporate Insolvency Resolution Process
- extension of time
- pending appeal
