Ashish Chaturvedi And Anr vs Inox Leisure Ltd And Anr
- CitationCompany Appeal (AT) (Insolvency) No. 47 of 2021
Ratio decidendi
The rule this decision rests on
The appellant's ground that the COVID-19 pandemic rendered him unable to comply with the direction to restore withdrawn amounts is not a legal ground capable of setting aside an order directing repayment of funds withdrawn in violation of a moratorium imposed under Section 14 of the Insolvency and Bankruptcy Code, 2016; the pandemic-related hardship does not displace the obligation to restore such amounts. Equitable considerations do not assist a party who has withdrawn funds in contravention of the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, and such a party cannot resist a direction to repay them with interest on the ground of equity.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Ashish Chaturvedi and Anr. ....Appellants Vs. Inox Leisure Ltd. and Anr. ....Respondents Present: Appellants: Mr. Siddhartha Patra, Advocate. Respondents:
ORDER
(Through Virtual Mode)
29.01.2021: I.A. No.109 of 2021 has been filed by the Appellant for seeking exemption from filing of the certified copy of the impugned order and other orders passed by the Adjudicating Authority. I.A. No. 109 of 2021 is disposed off with direction to Appellant to file the certified copy of the impugned order within one week.
In view of the ground urged and keeping in view the directions given by the Hon'ble Apex Court in suo moto jurisdiction as also by this Appellate Tribunal in suo moto jurisdiction in regard to extension of period of limitation and coupled with the fact that the impugned order was uploaded on the website of the Adjudicating Authority belatedly on 21st November, 2020, delay of 22 days in preferring the appeal is condoned. I.A. No.110 of 2021 stands disposed of.
In terms of the impugned order dated 9th November, 2020, the Appellant, erstwhile Director of the Corporate Debtor has been directed to deposit the total amount of Rs.32 lakhs along with interest @ 12% per annum from the date of the withdrawal which was in violation of provisions of Section 14 of the
Contd/-......
-2- Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short). No cogent legal ground assailing the impugned order and justifying the retention of the amount withdrawn in utter violation of the order passed under Section 14 of the 'I&B Code' during the Corporate Insolvency Resolution Process proceeding has been assigned. The ground urged that due to COVID-19 Pandemic situation, Appellant is unable to comply with the direction is not a legal ground to set aside the impugned order. There is no equity in favour of the Appellant who is guilty of violation of provisions of Section 14 of the 'I&B Code'. Faced with this situation, learned counsel for the Appellant offered to withdraw the appeal. The appeal is accordingly dismissed as withdrawn.
[Justice Bansi Lal Bhat] Acting Chairperson
[Dr. Ashok Kumar Mishra] Member (Technical)
[Dr. Alok Srivastava] Member (Technical) AR/g
Company Appeal (AT) (Insolvency) No. 47 of 2021
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