Case Note & Summary
The appeal was filed by the Resolution Professional of New Bombay Paper Mills Pvt. Ltd. against an order rejecting an application for an extension of the Corporate Insolvency Resolution Process (CIRP) period. The application sought to extend the CIRP period by 90 days beyond the initial 330 days, which was set to expire on 27/02/2026. The Adjudicating Authority had rejected this application. The Resolution Professional argued that three resolution plans had been received and voting had commenced on 12/05/2026, but the order impugned was uploaded on 19/05/2026, leading to the abandonment of the voting process. The Committee of Creditors supported the need for a short extension to complete the voting process, as the corporate debtor was likely to be resolved. The Tribunal, considering the facts, decided to extend the CIRP period until 30/06/2026, allowing time for the voting to be completed and for any approved plan to be filed with the Adjudicating Authority. The appeal was disposed of accordingly.
Headnote
A) Insolvency Law - Corporate Insolvency Resolution Process - Extension of Period - Insolvency and Bankruptcy Code, 2016, Section 12 - The court found that extending the period of CIRP was necessary to complete the voting on resolution plans that had been received. The appeal was allowed to extend the period until 30/06/2026 to ensure the process could be completed and any approved plan could be filed before the Adjudicating Authority. Held that justice would be served by this extension (Paras 6-7).
Issue of Consideration
Whether the period of Corporate Insolvency Resolution Process should be extended to complete the voting on resolution plans.
Final Decision
The Tribunal allowed the appeal and extended the period of the Corporate Insolvency Resolution Process until 30/06/2026 to complete the voting on resolution plans.
Law Points
- Corporate Insolvency Resolution Process
- extension of period
- voting on resolution plans
