CIRP process has to be completed within the time-limit stipulated u/s 12 of IBC, rules SC
- Blog|News|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 3 December, 2021
Latest from Taxmann
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
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
