Canara Bank vs R.P. Of Allied Strips Ltd

Canara Bank ...Appellant

Versus

R.P. of Allied Strips Ltd. ...Respondent

Present: For Appellant : Ms. Reema Khorana, Ms. Sunita sharma and Mr. Kartik Rathi, Advocates

For Respondents: Mr. Tushar Tyagi and Mr. Venkatesar, Advocates For R.P.

Ms. Shoba Gupta, Ms. Devahut Tamuli, Mr. Sourav Roy, Mr. Pankaj Bhagat and Ms. Tusharka Sharma, Advocates for R-2

ORDER

26.10.2018 During the 'corporate insolvency resolution process' against M/s.

Allied Strips Ltd. one 'M/s. Power2SME Private Limited' made the application

before the 'Resolution Professional' on 20th March, 2018 praying, inter-alia, for

the relief of discharge of the material claimed to be belonged to it and to permit

it to take back the material along with the truck. The 'Resolution Professional'

after detailed deliberation and in terms of the direction of the Adjudicating

Authority and taking into consideration the fact that Canara Bank (appellant

herein) being the consortium leader had extended working capital facilities to the

'corporate debtor', passed the order on 20th August, 2018 in favour of the said

claimant. It was held that the claim was in respect of the material supplied by

the aforesaid applicant 'Power2SME Private Limited' to the 'Corporate Debtor'

on the job work basis after execution of the agreement. -2-

Thereafter, the appellant - Canara Bank had not filed any application

under Section 60(5) of the I&B Code but merely filed an objection and then made

a prayer for direction of the subsequent 'Resolution Professional' for review of

the earlier decision of the 'Resolution Professional' of 20th August, 2018. The

Adjudicating Authority by the impugned order dated 11th October, 2018 held

that there is no provision to review the decision of the 'earlier Resolution

Professional' by 'subsequent Resolution Professional' and disposed of the

application filed by the third party with the direction to the 'Resolution

Professional' to comply with the earlier order of the 'Resolution Professional' of

20th August, 2018.

Learned counsel for the 'Canara Bank' submits that according to the

agreement and the transactions the material should not be released in favour of

the 'Power2SME Private' as was ordered on 20th August, 2018. However, the

order dated 20th August, 2018 was not challenged by the appellant before this

Appellate Tribunal and the said order having attained finality, we are not inclined

to re-open such issue in an appeal preferred against the order of rejection of the

application of review. As we find no merit in the appeal, we dismiss the appeal.

No cost.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice Bansi Lal Bhat ] Member (Judicial) /ns/uk/ Company Appeal (AT) (Insolvency) No. 657 of 2018