# In the matter of Seabird Seaplane Pvt. Ltd. IA(IBC)-71-KOB-2021 In TCP-59-KOB-2019

> NCLT judgment dated 2021-04-26. Citation: TCN-2021-NCLT-02302. The case involves an application filed by the Liquidator under Regulation 44(2) of the IBC…

- **Court:** NCLT
- **Order date:** 26 Apr 2021
- **Citation:** TCN-2021-NCLT-02302
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/seabird-seaplane-pvt-ltd-iaibc-71-kob-2021-in-tcp-59-kob-2019-6ee52ef7

## Summary

### Background

The case involves an application filed by the Liquidator under Regulation 44(2) of the IBC (Liquidation Process) seeking an extension of the liquidation period for six months, effective from 2021-02-15, and to exclude a lockdown period of 149 days (from 2020-03-29 to 2020-08-25) from the liquidation timeline. The Corporate Insolvency Resolution Process (CIRP) was initiated by Federal Bank Limited (Financial Creditor) against Seabird Seaplane Private Limited (Corporate Debtor) and was admitted on 2019-07-23. Liquidation proceedings were initiated on 2019-09-19, and the Applicant was appointed as Liquidator. Due to the Covid-19 pandemic and nationwide lockdown, the liquidator was restricted from taking further actions, leading to the application for extension.

## Facts

Federal Bank Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against Seabird Seaplane Private Limited. The CIRP application was admitted on 2019-07-23. Subsequently, liquidation proceedings were initiated on 2019-09-19, and a liquidator, Shri Kizhakkekara Kuriakose Jose, was appointed. Regulation 44 of the IBBI (Liquidation Process) Regulations, 2016, mandates the liquidator to liquidate the Corporate Debtor within one year from the liquidation commencement date, i.e., by 2020-09-19. However, the Covid-19 pandemic and nationwide lockdown imposed by the government from 2020-03-29 to 2020-08-25 (149 days) disrupted the liquidation process. Consequently, the liquidator filed an application under Section 44(2) of the IBC Liquidation Process Regulation 2016

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## Issues and analysis

### Issue 1: Whether the Liquidator's application for an extension of the liquidation period under Regulation …

**Ratio:** Regulation 44(2) of the IBC (Liquidation Process) Regulations, 2016, allows the

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**Reasoning:** The court considered the disruptions caused by the Covid-19 pandemic and the nationwide

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**Interpretation:** Regulation 44(2) is interpreted to allow for flexibility in the liquidation

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Ashok Kumar…
- **Appellants:** Kizhakkekara…
- **Respondents:** Seabird Seaplane…; Federal Ban…

## Timeline

- **2019-07-23 — CIRP Admi…**: The Application for Corporate Insolvency Resolution Process filed by Federal Bank Limited…
- **2019-09-19 — Liquidation Proceedings…**: Liquidation Proceedings were initiated against the Corporate Debtor, and the Applicant…

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