CIRP process has to be completed within the time-limit stipulated u/s 12 of IBC, rules SC

Case details: Committee of Creditors of Amtek Auto Ltd. v. Dinkar T. Venkatsubramanian - [2021] 133 taxmann.com 17 (SC)

Judiciary and Counsel Details

• • M.R. Shah AND Sanjiv Khanna, JJ.

Facts of the Case

In the instant case, the Supreme Court observed that the entire corporate insolvency resolution process has to be completed within the period stipulated under ssection 12 of the IBC and any deviation would defeat the object and purpose of providing such time limit.

High Court Held

The Court held that where the time limit has been condoned in view of the various litigations pending between the parties and in the peculiar facts and circumstances of the case, any further delay in implementation of the approved resolution plan, the appeal against which has also been dismissed, would defeat the very object and purpose of providing specific mandatory time limit u/s 12 of the IBC for completion of the insolvency resolution process. Therefore, all the concerned parties to the approved resolution plan and/or connected with implementation of the approved resolution plan including IMC directed to complete the implementation of the approved resolution plan, within a period of four weeks from today, without fail.

“It was further directed and it goes without saying that on implementation of the approved resolution plan and even as per the approved resolution plan, an amount of Rs. 500 crores now deposited by DVI-successful resolution applicant be transferred to the respective lenders/financial creditors as per the approved resolution plan and/or as mutually agreed.

Any lapse on the part of any of the parties in implementing the approved resolution plan with the time stipulated hereinabove shall be viewed very seriously. “ said, Apex Court