Ashok Arora Vs Presidium Educational Institution Pvt. Ltd. (NCLT Delhi)
The applications before the NCLT sought extension of the Corporate Insolvency Resolution Process (CIRP) by 90 days for two corporate debtors engaged in the education sector. The Resolution Professional (RP) submitted that multiple extensions had already been granted, the promoters and suspended directors had not cooperated, essential records were unavailable, and considerable efforts were being undertaken to trace assets, obtain control over websites and digital assets, recover information, and progress the insolvency process. The Committee of Creditors (CoC) approved the extension requests with full voting support and expressed the view that liquidation was not a viable option because schools operating under the relevant brands continued to function and generate revenue. The RP also highlighted efforts such as trademark renewals, site inspections, complaints to authorities, applications for control of digital assets, cybercrime complaints, and contempt proceedings against promoters and directors.
The NCLT examined the history of the CIRP proceedings and noted that both CIRPs had already exceeded the statutory timeline prescribed under Section 12 of the Insolvency and Bankruptcy Code, 2016. The Tribunal observed that despite multiple extensions and substantial passage of time, no resolution plan had been received, no prospective resolution applicant had been identified, and there was no material indicating the likelihood of a viable resolution within a foreseeable period.
