Arjun Technologies (India) Ltd vs Karur K.C.P Packagings Ltd
- CitationCompany Appeal (AT) (Insolvency) No. 197 of 2019
Ratio decidendi
The rule this decision rests on
The appeal is disposed of as rendered infructuous because the corporate insolvency resolution process has since been initiated against the same corporate debtor in a separate proceeding, so the Tribunal's reasoning rests on the principle that where a corporate debtor is already subject to a live CIRP, a subsequent appeal against a separate admission order concerning that debtor may be treated as infructuous, with the appellant's remedy being to file its claim within the ongoing resolution process. The Tribunal further reasons that the appellant's apprehensions about its claim being left unaddressed (on settlement, withdrawal, or setting aside of the admission order) are met by granting liberty to re-agitate the matter in the present appeal should the CIRP close, the other appeal be allowed, or the financial creditor settle or withdraw.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Arjun Technologies (India) Ltd. ...Appellant
Vs
Karur K. C. P. Packagings Ltd. ... Respondent
Present: Appellant: Mr. S. Santanam Swaminadhan and Mr. Kartik Malhotra, Advocates.
Respondent: Ms. Rhea Luthra, Advocate.
ORDER
24.05.2019: Pleadings are complete. Learned counsel for the Respondent
- 'Corporate Debtor' submits that in Company Appeal (AT) (Insolvency) No. 484
of 2019, an order has been passed by this Appellate Tribunal on 3rd May, 2019
in terms whereof constitution of Committee of Creditors in Corporate
Insolvency Resolution Proceedings against the same Corporate Debtor has been
stayed.
2. It appears that the aforestated appeal arises out of an order of admission
passed under Section 7 of Insolvency and Bankruptcy Code, 2016. Since the
Corporate Debtor is common to the aforestated appeal and the instant appeal,
the instant appeal has been rendered infructuous in view of subsequent
development, as Corporate Insolvency Resolution Process has been initiated in
Company Appeal (AT) (Insolvency) No. 197 of 2019 -2-
consequence of order of admission passed by the learned Adjudicating
Authority (National Company Law Tribunal), Chennai Bench on 24th April,
2019 in CP/1275/IB/2018 titled "M/s The Karur Vysya Bank Ltd. Vs. M/s
Karur KCP Packagings Limited"
3. Appropriate remedy open to the Appellant herein, who claimed to be an
'Operational Creditor', is to file the claim as the Corporate Insolvency
Resolution Process against the Corporate Debtor is underway and the Interim
Resolution Professional has been appointed.
4. Learned counsel for the Appellant submits that as the Committee of
Creditors is yet to be constituted and its constitution has been stayed in terms
of interim order passed by this Appellate Tribunal, in the event of a settlement
between the Financial Creditor and the Corporate Debtor or withdrawal of
application by Financial Creditor or setting aside of order of admission of
application under Section 7 of I&B Code, the grievance of the Appellant may
remain unaddressed.
5. These apprehensions of the Appellant can be allayed by giving liberty to
the Appellant to come back and re-agitate the matter in the instant appeal, in
case, the Corporate Insolvency Resolution Process is closed in the event of
Company Appeal (AT) (Insolvency) No. 197 of 2019 -3-
aforestated appeal (Company Appeal (AT) (Insolvency) No. 484 of 2019) being
allowed or in the event of some settlement or withdrawal of application of
Financial Creditor. The appeal is accordingly disposed off with aforesaid
liberty.
(Justice Bansi Lal Bhat) Member (Judicial)
(Mr. Balvinder Singh) Member (Technical)
am/nn
Company Appeal (AT) (Insolvency) No. 197 of 2019
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free