Apogee Manufacturing Pvt. Ltd vs Hari Kishan Sharma & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 384 of 2018
Ratio decidendi
The rule this decision rests on
Where a corporate insolvency resolution process is ongoing and the information memorandum has not yet been prepared, the amendment of 6 June 2018 treating real estate allottees as financial creditors applies to the resolution professional's collation and decision on their claims, because that decision is taken after the amendment came into force; the amendment is therefore not applied retrospectively to claims already decided before its commencement.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Apogee Manufacturing Pvt. Ltd. ...Appellant
Versus
Hari Kishan Sharma & Ors. ...Respondents
Present:
For Appellant : Mr. Anirudh Wadhwa and Mr. Hiresh Choudhary, Advocates
For Respondents : Mr. Vijay Shankar, Advocate for Victory Infra Projects Pvt. Ltd.
ORDER
25.07.2018 During the 'corporate insolvency resolution process', by the
'Insolvency & Bankruptcy Code (Amendment) Ordinance, 2018' (No. 6 of 2018)
with effect from 6th June, 2018 the allottees of real estate purchase have been
treated to be the 'Financial Creditor'. This is accepted by the Adjudicating
Authority by the impugned order dated 12th June, 2018.
Learned counsel appellant submitted that the Amendment No. 6 of 2018
which came into effect from 6th June, 2018 cannot operate retrospectively.
However, such submission cannot be accepted as the 'corporate insolvency
resolution process' is ongoing and information memorandum has not yet been
prepared. In the meantime as 'Resolution Professional' is required to collate all
claim, while accepting the claim of allottees of real estate purchase the 2
'Resolution Professional' will have to treat them as 'Financial Creditors' because
he is to decide the claim after 6th June, 2018.
We find no merit in this appeal. It is accordingly dismissed.
[Justice S.J. Mukhopadhaya] Chairperson
[ Justice Bansi Lal Bhat ] Member (Judicial)
/ns/sk/
Company Appeal (AT) (Insolvency) No. 384 of 2018
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