Chapter II Corporate Insolvency Resolution Process
Section 12. Time-limit for completion of insolvency resolution process. –
(1) 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.
(2) 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.
(3) 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:
2[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:
Provided also that where the insolvency resolution process of a corporate debtor is pending and has not been completed within the period referred to in the second proviso, such resolution process shall be completed within a period of ninety days from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019.]
1.Ins. by Ordinance No. 9 of 2020 (w.e.f. 05-06-2020).
2 Ins. by Act No. 1 of 2020, sec.4 (w.e.f. 28-12-2019).
CASE LAWS
1. Application can be filled under sec 12 for extension of time limit after 180 days also, sec 12 does not say that application should be filed before 180 days.
2. Circumstances must exist for grant of extension of time u/s 12 of the code.
3. If the facts & circumstances in some unforeseen circumstances justify the exclusion of some period for counting 270 days then AA/Appellate tribunal should exclude such period.
4. If AA is satisfied that it is in the interest of justice that the time limit should be extended it can extend the same.