Edelweiss Asset Reconstruction Co. Ltd. Vs. AML Steel & Power Ltd. [MA/630/2018 in CP/632/IB/2017] - Synopsis
Team SoOLEGAL 15 Jan 2021

In this case, Edelweiss Asset Reconstruction Co. Ltd. Vs. AML Steel & Power Ltd. [MA/630/2018 in CP/632/IB/2017], the registered office of the corporate debtor was based in Tamilnadu, while the factory premises were located in Jharkhand. While the CIRP phase started on 21.03.2018, the Resolution Professional was unable to obtain physical custody of the factory premises until the date of the submission, although eight prospective resolution applicants conveyed their concern, the Resolution Professional was unable to demonstrate the factory premises to those prospective resolution applicants. Resolution Professional had claimed that the CIRP duration of 270 days, although closed by 07.12.2018, did not conduct the job due to lack of financial details and could not protect the physical ownership of the factory premises. The Resolution Professional pushed an appeal for the Committee of Creditors to implement a resolution demanding the removal of at least 90 days from the CIRP duration.
The National Company Law Tribunal had ruled that, in this extraordinary case, because at least a time of unused CIRP period is omitted allowing the Resolution Professional and the Committee of Creditors to process the Resolution Proposals to visit the factory premises in order to have access to the Resolution Applicants to visit the factory, the entire object of the entry of the CP will be missed. By referring to an order passed by Hon'ble National Company Law Appellate Tribunal in respect to Quinn Logistics India Private Limited Vs. Mack Soft Tech Private Limited and two others on 8 May 2018, the Bench had removed 90 days from the CIRP duration with effect from 07.12.2018.

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