The Insolvency & Bankruptcy Code (IBC) mandates the completion of CIRP within 330 days, which includes time taken during litigations
New Delhi, Sep 12 (PTI)Â The National Company Law Tribunal (NCLT) has extended the deadline to September 15 for completion of the insolvency resolution process of debt-ridden Future Retail Ltd (FRL).
The decision came on an application moved by the company’s Resolution Professional before the tribunal’s Mumbai bench seeking to exclude a period of 29 days from the process, according to a regulatory filing.
“NCLT on September 7, 2023, heard the application and granted the said exclusion of 29 days’ from CIRP of FRL. Consequently, the last date for completion of CIRP of FRL is September 15, 2023,” it said.
CIRP refers to Corporate Insolvency Resolution Process.
This is the third extension for FRL.
Last month, NCLT extended the deadline to August 17 after allowing the plea of FRL to exclude 33 days from the CIRP. In April, NCLT had granted the company an extension of 90 days till July 15, 2023 for concluding the process.
The Insolvency & Bankruptcy Code (IBC) mandates the completion of CIRP within 330 days, which includes time taken during litigations.
The insolvency proceedings against FRL was started by the tribunal on July 20, 2022.
As per Section 12(1) of the Code, a CIRP shall be completed within a period of 180 days from the date of initiation.
However, NCLT may grant a one-time extension of 90 days. The maximum time within which CIRP must be completed, including any extension or litigation period, is 330 days.
