Athena Advisory Services Pvt. Ltd vs Tanvi Construction Pvt. Ltd

Athena Advisory Services Pvt. Ltd. .... Appellant

Vs

Tanvi Construction Pvt. Ltd. .... Respondent

Present:

For Appellant: Mr. Kunal Tandon, Mr. Darryl Pereira, Mr. Mayank, Ms. Niti Jain and Ms. Richa Sandilya, Advocates.

For Respondent: Mr. Armin Wandrewala, Mr. Akshay Vani, Mr. Manan Jaiswal and Mr. Neel Kamal Mishra, Advocates.

ORDER

01.05.2019 The Appellant - Athena Advisory Services Pvt. Ltd. filed

application under Section 7 of the Insolvency and Bankruptcy Code, 2016

(I&B Code), which having been rejected by order dated 12th March, 2019

passed by the Adjudicating Authority (National Company Law Tribunal),

Mumbai Bench, the present Appeal has been preferred.

2. The application under Section 7 has been rejected on technical ground

that the application under Section 7 filed by the Director on the basis of

Board's Resolution was not proper, though time was allowed to the Appellant.

Company Appeal (AT) (Insolvency) No. 313 of 2019 Page 1 of 3

3. Learned Counsel appearing on behalf of the Respondent submits that

the Appellant was given an opportunity to file the proper Resolution of the

meeting of the Board of Directors, but it was not produced within time, but

the same was subsequently corrected. However, we are not going to decide

such disputed question, but merely on such technicality an application

under Section 7 cannot be rejected, particularly in view of Notification dated

27th February, 2019 passed by the Ministry of Corporate Affairs, which reads

as follows: -

4. The impugned order dated 12th March, 2019 having been passed after

the Notification dated 24th February, 2019, we are of the view that the

Company Appeal (AT) (Insolvency) No. 313 of 2019 Page 2 of 3 Adjudicating Authority should have entertained the application under

Section 7 of the I&B Code.

5. For the reasons aforesaid, we set-aside the impugned order dated 12th

March, 2019 and remit the case to the Adjudicating Authority for passing

appropriate order after notice to the Corporate Debtor without going into

such technicality. It will be open to the Corporate Debtor to settle the matter

in the meantime.

[Justice S. J. Mukhopadhaya] Chairperson

[Justice A.I.S. Cheema] Member (Judicial)

[Kanthi Narahari] Member (Technical)

Ash/GC

Company Appeal (AT) (Insolvency) No. 313 of 2019 Page 3 of 3