Alok Industries Limited vs Ashvanee Kumar Singh And Ors. & Ors
- CitationCompany Appeal (AT) (Ins) No.1217 of 2025
Ratio decidendi
The rule this decision rests on
The reasoning here is brief but present. On the question of impleadment, the Tribunal holds that a resolution professional who was also Chairman of the Monitoring Committee has a responsibility and duty to explain, before the Adjudicating Authority, whether the workmen have been paid in terms of the resolution plan, and so cannot be treated as an unnecessary party to a contempt application arising from implementation of that plan. On the appeal against the impleadment order, the Tribunal holds that such impleadment, in these circumstances, discloses no infirmity warranting interference, and the appeal is dismissed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
In the matter of: Alok Industries Ltd. ...Appellant
Vs. Ashvanee Kumar Singh & Ors. ...Respondents
Present: Appellant: Ms. Petrushka Des Gupta, Mr. Mridul Yadav, Mr. Anand Singh Sengar, Advocates Ms. Sayalee Dolas, Advocate Respondent:
ORDER
(Hybrid Mode) 30.06.2026 - This Appeal is directed by the successful resolution applicant
challenging an Order of the Adjudicating Authority impleading the resolution
applicant in an application for initiating contempt filed by certain workmen of
the erstwhile corporate debtor had taken out after the plan was implemented.
2. The learned Counsel for the appellant submits that the entire amount due
payable to the workmen under the plan has been fully paid and the very
application which some of the workmen have now filed and pending adjudication
before the Adjudicating Authority is misconceived. He submitted that given the
fact that the plan has been fully implemented, the resolution professional might
not have any documents to defend the action. Indeed, the appellant itself has
filed all necessary documents before the Adjudicating Authority for it to decide
the issue before it. In the circumstances, impleading the resolution professional
in an application is not required. But, the Adjudicating Authority vide its Order
dated 18.06.2026 has required the RP to appear before him to explain. 2
3. Whether the workmen have been fully paid in terms of the resolution plan
is something which the Adjudicating Authority may have to decide. And the
resolution professional in the context cannot be said to be an unnecessary
addenda to the proceeding as he has the responsibility and duty to explain the
matter. Inasmuch as the resolution professional was also the Chairman of the
Monitoring Committee, a duty is cast upon him to explain the matter before the
Adjudicating Authority. In view of the discussion we have herein recorded, we
find that there is no merit in the appeal. The appeal is dismissed.
4. The learned Counsel for the appellant submits that the plan was fully
implemented by 14th September, 2020 and the Contempt Application No.15 of
2023 is pending before the Adjudicating Authority for almost four years now.
5. We, therefore, require the learned Adjudicating Authority to expedite the
hearing of Contempt Application No.15 of 2023 and dispose of the same as early
as possible but not later than two months from today.
[Justice N. Seshasayee] Member (Judicial)
[Arun Baroka] Member (Technical)
[Indevar Pandey] Member (Technical) rs/beena
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