Bharat Heavy Electricals Limited vs Rec Limited & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 384 of 2024
Ratio decidendi
The rule this decision rests on
The order rests on the proposition that where a creditor's claim is already pending against a corporate debtor, the existence of an unexecuted arbitral award in the creditor's favour does not by itself warrant interference with the admission of a financial creditor's Section 7 application under the Insolvency and Bankruptcy Code, since the appellant's remedy lies in filing and having its claim adjudicated within the corporate insolvency resolution process.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
In the matter of: Bharat Heavy Electricals Ltd. ....Appellant Vs. REC Ltd. (Formerly known as Rural Electrification ...Respondents Corporation Ltd.) & Anr. For Appellant Mr. Gaurav Mitra, Sr. Advocate with Mr. Amit Dhingra, Mr. Shivam Raheja, Ms. Lavanya Pathak, Ms. Kesarg Doma, Advocates. For Respondents Mr. Saurav Panda, Ms. Mohana Nijhawan, Advocates for REC Mr. Shashank Agarwal, Advocate for IRP Mr. Sidhant Kumar, Ms. Manyaa Chandok, Ms. Ekssha Kashyap, Advocates for R2
Company Appeal (AT) (Insolvency) No. 385 of 2024
In the matter of: Bharat Heavy Electricals Ltd. ....Appellant Vs. REC Ltd. (Formerly known as Rural Electrification ...Respondents Corporation Ltd.) & Anr. For Appellant Mr. Gaurav Mitra, Sr. Advocate with Mr. Amit Dhingra, Mr. Shivam Raheja, Ms. Lavanya Pathak, Ms. Kesarg Doma, Advocates. For Respondents Mr. Saurav Panda, Ms. Mohana Nijhawan, Advocates for REC Mr. Shashank Agarwal, Advocate for IRP Mr. Sidhant Kumar, Ms. Manyaa Chandok, Ms. Ekssha Kashyap, Advocates for R2
ORDER
(Hybrid Mode)
04.03.2024: These two Appeals have been filed by the Appellant
challenging the orders dated 02.01.2024 admitting Section 7 Application filed
by the 'REC Ltd.' and 05.01.2024 by which intervention application field by
the Appellant has been rejected.
2
2. Learned Counsel for the Appellant submits that there is an award dated
20.05.2022 by Calcutta High Court in favour of the Appellant which has been
put for execution and interim injunction has already been granted by the
Calcutta High Court. It is submitted that the Section 7 application has been
admitted which shall cause prejudice to the Appellant.
3. We have noticed that the application under Section 7 was filed in the
year 2021 where award was in favour of the Appellant on 20.05.2022. The
application was filed by REC Limited and has been admitted by the impugned
order dated 02.01.2024. It is always open for the Appellant to file its claim in
the CIRP of the Corporate Debtor. It is submitted by the Appellant that the
claim has already been filed. Claim of the Appellant having been filed it shall
be considered in accordance with the law in the CIRP of the Corporate Debtor.
We see no reason to interfere with the impugned orders. Both the Appeals are
dismissed.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Indevar Pandey] Member (Technical) Anjali/nn
Company Appeal (AT) (Insolvency) Nos. 384 & 385 of 2024
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