Asha Apartments Pvt Ltd vs Gospell Digital Technology Co. Ltd. And ...
- CitationCompany Appeal (AT) (Insolvency) No. 915 of 2024
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal's disposal rests on the proposition that where the Adjudicating Authority has directed the Resolution Professional to verify a creditor's claim and has expressly made no finding on the merits of that claim, the appellate forum will not itself adjudicate the merits; it will instead direct that the verification be completed by the Resolution Professional within a fixed, early timeframe, while leaving the verification process to proceed on the corporate debtor's available records.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
In the matter of: Asha Apartments Pvt. Ltd. ....Appellant Vs. Gospell Digital Technology Co. Ltd. & Ors. ...Respondents For Appellant Mr. Abhijeet Sinha, Sr. Advocate with Ms. Aditi Sharma, Advocate. For Respondents Mr. Ashish Dholakia, Sr. Advocate with Mr. Sharath Sampath, Ms. Kavya Singh, Ms. Stuti Jain, Mr. Rohan Chawla, Advocates for R1. Mr. Arun Bagaria, RP Mr. Avinash Gupta, Mohad Razi, Mr. Lalit Mohan, Mr. Videh Vaish, Ms. Aakansha, Mr. Vishal Mital, Mr. Tarishayoobi, Mr. Md. Tariq Alam, Advocates for R2
ORDER
(Hybrid Mode)
09.05.2024: Heard Counsel for the Appellant and Counsel appearing for
the Respondent No.1 as well as the Resolution Professional who appears in
person.
2. This Appeal has been filed against the order dated 04.03.2024 passed
in IA No.503 of 2024. The Adjudicating Authority by impugned order has
appointed new Resolution Professional and has issued following directions in
paragraphs 24 and 25:-
"24) It is not in dispute that the claim of Asha Apartment Pvt. Ltd. is stated to be in verification and Respondent No. I submitted that he shall take appropriate decision in relation to genuineness in due course. However, this bench has the serious concern 2
in relation to the impartiality of the decision in respect of Asha Apartments Pvt. Ltd. in the light of Respondent No. 1 despite having been voted out was voted in by the same Financial Creditor. We deem it appropriate the proprietary of placing the Resolution for his appointment as Resolution Professional and appointment of M/s Decode Resolvency International Pvt. Ltd., IPE as support entity before the re-
constitution of CoC is in itself questionable. Accordingly, we set aside the Resolution passed in 2nd CoC meeting appointing the Respondent No. I as Resolution Professional and M/s Decode Resolvency International Pvt. Ltd., IPE as support entity. We deem it appropriate to appoint Insolvency Professional Mr. Arun Kisanlal Bagadia as a Resolution Professional of the Corporate Debtor for a fee of Rs. 2,00,000/- per month plus GST and discharge the Respondent No. 1 with effect from 11.03.2024. The Respondent No. 1 is directed to handover all the records whatever available with him in the physical and electro format to the incumbent Resolution Professional.
25) The incoming Resolution Professional shall take final decision on the claim submitted by Asha Apartments Pvt. Ltd. within Thirty (30) days and re- constitute the CoC, if required. Till such time, the CoC as constituted initially shall function and take decisions. The business carried out at 3rd CoC meeting, if any, shall not be given effect to, if any. The incumbent Resolution Professional shall pay the fees of the Outgoing IRP at the rate of Rs. 2,00,000/- per month plus out of pocket expenses after verification. thereof if not already approved by the CoC."
3. Counsel for the Appellant submits that more than two months' period
was over but the claim of the Appellant was not verified.
4. Resolution Professional who appears in person submits that the process
of verification is still on since he has not received the relevant records from
the suspended directors of the corporate debtor. He submits that he is in the
process of filing an application under Section 19.
Company Appeal (AT) (Insolvency) No. 915 of 2024 & I.A. No. 3316, 3319 of 2024 3
5. We have no doubt that in view of the direction issued by the Adjudicating
Authority that the Appellant's claim shall be verified as per the records of the
corporate debtor. It shall be open for the Resolution Professional to file an
appropriate application and take steps and complete the verification as
directed the Adjudicating Authority as early as possible. The Adjudicating
Authority has not made any observations in the order regarding merits of the
claim of the appellant and the Resolution Professional shall proceed to verify
the claim as per the records available as early as possible preferably within
the period of two months.
6. The Appeal is disposed of.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Arun Baroka] Member (Technical)
Anjali/nn
Company Appeal (AT) (Insolvency) No. 915 of 2024 & I.A. No. 3316, 3319 of 2024
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