Ashok Tiwari vs Dbil & Anr

National Company Law Appellate Tribunal10 August 2022Ashok Bhushan

CitationComp. App. (AT) (Ins.) No. 934

Ratio decidendi

The rule this decision rests on

The Appellate Tribunal declined to entertain an appeal against interlocutory orders while the applications seeking recall of the admission order and interim relief remain pending before the Adjudicating Authority, since the Adjudicating Authority is seized of those applications and should decide them first. Where the Adjudicating Authority is directed to dispose of pending applications at the earliest opportunity, and the circumstances warrant preserving the status quo, the Appellate Tribunal may direct that the Committee of Creditors take no further steps in the corporate insolvency resolution process pending that disposal, with the Interim Resolution Professional ensuring that the Corporate Debtor is run as a going concern.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHI

Comp. App. (AT) (Ins.) No. 934 & 935 of 2022 IN THE MATTER OF: Ashok Tiwari ....Appellant

Vs.

DBS Bank India Ltd. (DBIL) & Anr. ....Respondents

Present: For Appellant: Mr. Gaurav Mitra, Mr. Prabhat Ranjan Raj, Mr. Sashwat Anand, Mr. Kumar Ayush, Mr. Gunjesh Ranjan, Mr. Anil Kumar, Mr. Sidharth Sarthi, Advocates For Respondents: Mr. Krishnendu Dutta, Sr. Advocate with Mr. Dhruv Malik, Ms. Palak Nenwani, Ms. Varsha and Ms. Mehak, Advocates

ORDER

10.08.2022: Heard Learned Counsel for the Appellant as well as Learned

Counsel appearing for the Respondent/ DBS Bank India Ltd.

This appeal has been filed against the order of the Hon'ble NCLT

Principal Bench, Delhi dated 01.08.2022 passed in I.A. No. 3630 of 2022 as

well as the order dated 27.07.2022 passed in I.A. No. 3470/2022. In this

appeal few facts are necessary to be noticed. By the order dated 25.03.2022

application under section 7 was admitted against which an appeal was filed by

the appellant in this 'Tribunal', in which appeal order was passed on

04.07.2022, giving liberty to the Appellant to file an application under Rule

49(2) of the NCLT, Rules, 2016 for recall of the ex-parte order.

Comp. App. (AT) (Ins.) No. 934 & 935 of 2022 Page 1 This 'Tribunal' also granted interim order for a period of two weeks.

Subsequently, an another I.A. No. 2239 of 2022 was filed in Comp. App. (AT)

(Ins.) No. 418 of 2022 which application was dismissed as withdrawn with

liberty to the Appellant to file an application, as per order dated 04.07.2022

interim protection was extended for a period of one week. The application

under Rule 49(2) was filed by the Appellant on 19.07.2022 on which notice was

issued 22.07.2022 and the matter was there after taken on 27.07.2022 fixing

the application 3470/2022 for 12.09.2022. Appellant filed an application for

interim relief being I.A. No. 3630/ 2022 which is also been permitted to be

listed on 12.09.2022, the application was filed on 28.07.2022.

Learned Counsel for the Appellant submits that the application for recall

of the order admitting CIRP is still pending and has been fixed for 12.09.2022,

Adjudicating Authority ought to have passed an order on the interim

application 3630/2022 grating some protection which have been simply listed

on the 12.09.2022 when main application was to come.

Both the applications i.e. 3470/2022 and 3630/2022 are still pending

before the Adjudicating Authority, we see no reason to entertain this appeal.

We have been informed by the Counsel for the Respondent that CoC has

already been constituted. Both the applications being pending before the

Adjudicating Authority, we are of the view that Adjudicating Authority shall

endeavour to dispose of the application on the next date i.e. 12.09.2022 or as

early as possible.

Comp. App. (AT) (Ins.) No. 934 & 935 of 2022 Page 2 However, looking to the facts of the present case we are of the view that

that till both the applications are pending consideration CoC shall not take any

further steps in the CIRP. IRP shall ensure that Corporate Debtor is run as a

going concern.

Appeal disposed of.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

sa/nn

Comp. App. (AT) (Ins.) No. 934 & 935 of 2022 Page 3

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