Corporate Insolvency Resolution Process (CIRP) against XYZ Ltd. was initiated on application by its Financial Creditors on September 21, 2019 but the process was not completed within the time limit prescribed in terms of

Section 12(1) of the Insolvency and Bankruptcy Code provides that subject to sub-section (2), the corporate insolvency resolution process shall be completed within a period of one hundred and eighty days from the date of admission of the application to initiate such process. Section 12(2) states that the resolution professional shall file an application to the Adjudicating Authority to extend the period of the corporate insolvency resolution process beyond one hundred and eighty days, if instructed to do so by a resolution passed at a meeting of the committee of creditors by a vote of 1 [sixty-six] per cent. of the voting shares. Section 12(3) stipulate that on receipt of an application under sub-section (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 one hundred and eighty days, it may by order extend the duration of such process beyond one hundred and eighty days by such further period as it thinks fit, but not exceeding ninety days: Provided that any extension of the period of corporate insolvency resolution process under this section shall not be granted more than once. 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. In view of the above legal provisions, there is a resolution by Committee of Creditors with 60% voting shares which is less than minimum 66% voting share as required and hence the Resolution Professional can not file application for extension.