NCLT Ahmedabad Relaxes Timeline Of Implemented Resolution Plan Taking Note Of COVID-19

In a significant order, the Ahmedabad bench of the National Company Law Tribunal allowed the request of a Resolution Applicant to relax the timeline for completion of its Resolution Plan.The relief was granted by Judicial Member Manorama Kumari in view of the unprecedented lockdown and suspension of business, which adversely impacted the company’s cash flow. Consortium Resolution Applicant of Shaifali Rolls Ltd. had stated that till February, 2020, it had duly submitted Audit Reports and Cash flow Statement to the Monitoring Committee appointed by the Tribunal to oversee its monthly activities under the Resolution Plan. However, it was not possible for the applicant to meet the timeline stipulated in the Resolution Plan, amid the lockdown as there was no definite cash flow. It had therefore requested the Tribunal to revise the timeline for four months, from the opening of the lockdown. He had also sought to exclude the period of lockdown from the timeline of its Resolution Plan.