Bhagwati Power And Steel Ltd vs Central Coalfields Limited & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 797 of 2022
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority's dismissal of an application under the Insolvency and Bankruptcy Code could not stand where its only ground was the pendency of a writ petition that had since been withdrawn; once that factual premise was removed, the rejection lacked any remaining basis, and the application had to be decided on its merits after hearing both parties.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Bhagwati Power and Steel Ltd. ...Appellant
Versus
Central Coalfields Ltd. & Anr. ...Respondents
Present: For Appellant: Mr. Mahesh Agrawal, Mr. Shivam Shukla, Ms. Geetika Sharma, Mr. Abhijeet Sinha, Advocates For Respondent: Mr. Uddyam Mukherjee, Mr. Swapnil Pattanayak, Advocates for R-1
ORDER
15.12.2022: Heard Learned Counsel for the parties.
2. This Appeal has been filed against the Order dated 12th May, 2022
passed in I.A. No. 983/KB/2021 filed by the Appellant-the Successful
Resolution Applicant. The Adjudicating Authority has rejected the Application
observing that management of the Corporate Debtor has filed the Writ Petition
being Writ Petition No. 4178 of 2016 and the matter is pending adjudication
before the Hon'ble Jharkhand High Court hence the Application has been
dismissed.
3. Learned Counsel for the Appellant submits that Writ Petition No. 4178
of 2016 stood withdrawn on 23rd December, 2021. Copy of the Order of the
High Court of Jharkhand in Writ Petition No. 4178 of 2016 has been filed as
Annexure-A11 to the Appeal.
4. In view of the aforesaid, we are of the view that Adjudicating Authority
ought to consider the I.A. No. 983/KB/2021 after hearing both the parties.
Learned Counsel for the Respondent No.1 is also permitted to file a Reply to -2-
the Application I.A. No. 983/KB/2021 before the Adjudicating Authority
within four weeks from today.
5. In result, Impugned Order dated 12th May, 2022 with regard to I.A. No.
983/KB/2021 is set aside and the matter is remitted back to the Adjudicating
Authority to consider afresh in accordance with law.
[Justice Ashok Bhushan] Chairperson
[Mr. Kanthi Narahari] Member (Technical)
[Mr. Barun Mitra] Member (Technical)
Basant/nn
Company Appeal (AT) (Insolvency) No. 797/2022
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