Whether the Corporate Insolvency Resolution Process (CIRP) initiated against Swarnim Builders, is required to be completed within a fixed time frame ? If so, what is the time limit for completion of CIRP and whether any

Time-limit for completion of insolvency resolution process: In terms of Section 5(14) of the Insolvency and Bankruptcy Code, 2016, Insolvency Resolution Process Period means the period of 180 days beginning from the insolvency commencement date and ending on one hundred and eightieth day. Further Section 12(2) of the Insolvency and Bankruptcy Code, 2016 states that the resolution professional shall file an application to the Adjudicating Authority to extend the period of the corporate insolvency resolution process beyond 180 days, if instructed to do so by a resolution passed at a meeting of the committee of creditors by a vote of 66% of the voting shares. Section 12(3) states that on receipt of an application under section 12(2), if the Adjudicating Authority is satisfied that the subject matter of the case is such that corporate insolvency resolution process cannot be completed within 180 days, it may by order extend the duration of such process beyond 180 days by such further period as it thinks fit, but not exceeding ninety days. It is provided that any extension of the period of corporate insolvency resolution process under this section shall not be granted more than once. It is provided further that the corporate insolvency resolution process shall mandatorily be completed within a period of three hundred and thirty days from the insolvency commencement date, including any extension of the period of corporate insolvency resolution process granted under this section and the time taken in legal proceedings in relation to such resolution process of the corporate debtor. Exclusion of certain period in counting the Insolvency Resolution Process Period: It is always open to the NCLT/NCLAT to exclude certain period for the purpose of counting the total period of 270 days. The grounds include the following: If the CIRP is stayed by a court of law or the NCLT/NCLAT/ Supreme Court If no RP is functioning for one or other reason during the CIRP The period between the date of order of admission/moratorium is passed and the actual date on which the RP takes charge for completing the CIRP On hearing a case, if order is reserved by the NCLT/NCLAT/Supreme Court and finally pass order enabling the RP to complete the CIRP If the CIRP is set aside by the NCLAT or order of the NCLAT is reversed by the Supreme Court and CIRP is restored Any other circumstances which justify exclusion of certain period. ( Quinn Logistics India Pvt. Ltd. Vs. Mack Soft Tech Pvt. Ltd. & Ors. [CA (AT) (Ins.) No. 185 of 2018] NCLAT judgement dated 08.05.2018 )