The Resolution Professional (RP) of Adhunik Metaliks Ltd sought “exclusion” of 20 days from the mandatory 270-day timeframe required to complete the insolvency resolution process.
The 270-day deadline granted to the bankrupt company under the corporate insolvency resolution process (CIRP) expired on April 29.
While no resolution plan was approved by the Committee of Creditors (CoC) during this period, the Resolution Professional on Tuesday submitted a progress report and sought a 20-day extension of the timeframe.
A similar appeal was made by the workers’ union of Adhunik Metaliks.
“We will see if such an exclusion can be provided or not,” the division bench of Justice Jinan KR and Justice Madan B Gosavi said.
Under the Insolvency and Bankruptcy Code (IBC) norms, a stressed entity undergoing CIRP goes into liquidation if no successful resolution plan is put in place within the stipulated period.
The matter will come up for hearing again on May 11.
In Adhunik’s case, there were only two resolution applicants: the UK-based Liberty House and the DP Jindal Group company Maharashtra Seamless.
While the former was selected as the eligible highest (H1) bidder, issues cropped up under Section 29A of IBC. Under this Section, a bidder can be disqualified for several reasons, including a loan default in any of the company’s subsidiaries.
“There was issues following the selection of Liberty House as H1. And by the time they clarified their stand, the CoC did not have time to consider the clarification. Hence, we have approached the court for suitable directions,” Mainak Bose, Counsel appearing on behalf of the Resolution Professional, said.
The Kolkata bench of the NCLT had admitted the insolvency petition filed by SBI against Adhunik Metaliks and other group firms, including Zion Steel and Orissa Manganese & Minerals, in August 2017.