Case Note & Summary
The matter before the National Company Law Appellate Tribunal involved an application seeking clarification on whether the period during which Corporate Insolvency Resolution Process (CIRP) proceedings were subject to an interim order should be excluded from the computation of the CIRP period. The applicant, Navin M. Raheja, contended that the stay order had been in effect for approximately 232 days, and excluding this period was crucial to prevent prejudice to the stakeholders involved in the Krishna Housing Scheme. The Tribunal noted that there was no prior order from the Adjudicating Authority addressing this specific issue. Consequently, the Tribunal directed the Adjudicating Authority to consider the matter of exclusion in the pending application and to resolve it as quickly as possible. The application was disposed of accordingly, with the Tribunal emphasizing the need for timely action to protect stakeholder interests.
Headnote
A) Insolvency Law - CIRP Period Exclusion - Clarification on Exclusion of Time - Insolvency and Bankruptcy Code, 2016 - The Tribunal directed the Adjudicating Authority to consider the exclusion of approximately 232 days during which the stay was operating, as it could cause prejudice to stakeholders. Held that the Adjudicating Authority should expeditiously dispose of the application regarding this issue (Paras 4-4).
Issue of Consideration
Whether the period during which the CIRP proceedings were subject to an interim order should be excluded while computing the CIRP period.
Final Decision
The Tribunal directed the Adjudicating Authority to consider the exclusion of the stay period in the pending application and to dispose of it expeditiously.
Law Points
- CIRP proceedings
- exclusion of time
- interim orders
- stakeholder claims
