Atul Kumar Kansal vs State Bank Of India
- CitationCompany Appeal (AT) (Insolvency) No. 692 of 2019
Ratio decidendi
The rule this decision rests on
Where the Adjudicating Authority has directed the Resolution Professional to ensure that no rights are created over property that is the subject of a status quo prayer, and has declined the prayer for status quo on the ground that the underlying MOU stood cancelled by a civil court order, the Appellate Tribunal will not interfere absent any shown ground for disturbing that order; the appellant's failure to show a ground for release of a bank guarantee furnished by the corporate debtor and its directors likewise justifies declining interference, and the moratorium is a basis for directing that such a guarantee not be invoked pending further orders.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Company Appeal (AT) (Insolvency) No. 692 of 2019
IN THE MATTER OF:
Atul Kumar Kansal ...Appellant
Versus
Nova Realtors Pvt. Ltd. & Anr. ...Respondents
Company Appeal (AT) (Insolvency) No. 693 of 2019
IN THE MATTER OF:
Atul Kumar Kansal ...Appellant
Versus
State Bank of India ...Respondent
Present: For Appellant : Mr. Neelambika Singh, Advocate
ORDER
08.07.2019 The 'Resolution Professional' has preferred this appeal against
the order dated 27th May, 2019, which reads as follows:
"CA 439/2019 has been filed by the
Resolution Professional praying for a status quo in
respect of land belonging to the Respondent no. 1.
Reply to this has been filed by the registered owner
of the land. Relying upon the decision of the civil
court, the non-applicant submits that the MOU dated 2
12th March, 2010 has been declared cancelled vide
an order dated 24th January, 2018.
In view of the same, RP shall ensure that no
rights are created over this property. The prayer
made in this application does not merit any
consideration and is dismissed."
The same very 'Resolution Professional' has filed a 'Company Appeal
(AT) (Insolvency) No. 693 of 2019' against the same very impugned order in
C.A. No. 501/2019, which reads as under:
"CA 501/2019 has been filed praying or
release of the amount by way of security for
furnishing a bank guarantee which is valid up to 31st
July, 2019. This Bank guarantee has been given by
the Corporate Debtor and its Directors. Keeping in
view the moratorium imposed, it is directed that this
bank guarantee shall not be invoked till further orders
of this court.
Mr. Sameer Kumar, Bank Manager, State Bank
of India is present in court and has been apprised of
the order."
Having heard the learned counsel for the parties and taking into
consideration the facts, the Adjudicating Authority has allowed the 'Resolution
Professional' to ensure that no rights are created over the property.
Learned counsel for the Appellant submits that the Bank Guarantee of
Rs.2,26,37,394/- and another FDR is Rs. 99 Lakhs against which the Bank
Company Appeal (AT) (Insolvency) Nos. 692 & 693 of 2019 3
Guarantee subsists. However, taking into conisation the facts that no ground
shown by the Appellant for release of the amount by way of security (Bank
Guarantee), we are no inclined to interfere with the impugned order. However,
we make it clear that if the 'Resolution Professional' has difficulty to keep the
company a going concern he may bring the same to the notice of the
Adjudicating Authority and the Adjudicating Authority may decide the matter
afresh without influenced by the impugned order dated 27th May, 2019 or the
order passed by this Appellate Tribunal.
Both the appeals stand disposed of with aforesaid observations.
[Justice S.J. Mukhopadhaya] Chairperson
[ Justice A.I.S. Cheema ] Member (Judicial)
[ Kanthi Narahari ] Member (Technical) /ns/gc
Company Appeal (AT) (Insolvency) Nos. 692 & 693 of 2019
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