Cane Development Council vs Oriental Bank Of Commerce & Anr

IN THE MATTER OF: Cane Development Council ...Appellant Versus Oriental Bank of Commerce & Anr. ...Respondents Present:

For Appellant: Shri Bikash Mohantay and Shri A.A. Thakur, Advocates For Respondent: None

ORDER

22.08.2019 Having heard learned Counsel for the Appellant and being

satisfied with the grounds, the delay of 15 days in preferring the Appeal is

condoned. Interlocutory Application No.2581 of 2019 stands disposed of.

Oriental Bank of Commerce (Financial Creditor) filed an Application under

Section 7 of Insolvency and Bankruptcy Code, 2016 (I&B Code - in short) for

initiation of corporate insolvency resolution process against M/s. NCS Sugars

Ltd. (Corporate Debtor). In the said case, the Appellant filed an Application under

Section 60(5) read with Rule 11 of the NCLT Rules, 2016 to implead the Appellant

as Respondent No.2 and to keep the Company Petition in abeyance till the

crushing season is over and to overcome all existing operations as thousands of

farmers and their families are dependent on the factory of the Corporate Debtor.

The Adjudicating Authority (National Company Law Tribunal), Hyderabad

Bench, Hyderabad rejected the Application as not maintainable as no third party

intervention is required at the stage of admission of the Application under

Section 7 or 9 of the I&B Code. Learned Counsel for the Appellant submits that -2-

the case has now been heard on merits and Order has been reserved by the

Adjudicating Authority. Similar plea has been taken before this Appellate

Tribunal that the matter should have been kept in abeyance till the crushing

season is over and to overcome all existing operations as the farmers and their

families are dependent on the Corporate Debtor.

Apart from the fact that the crushing season is over, but even if we accept

that each year there may be crushing season and famers are dependent on the

Corporate Debtor, that cannot be ground to keep any proceeding pending. If the

Application under Section 7 is admitted, in such case also, the Interim

Resolution Professional is bound to keep the Corporate Debtor as going concern

and in such case for the purpose of keeping the factory going concern, it has to

be dependent on the farmers for crushing of the sugarcane. In such case, neither

the employees/workmen will be affected nor the farmers.

The Appeal stands disposed of.

[Justice S.J. Mukhopadhaya] Chairperson

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

[Kanthi Narahari] Member (Technical) /rs/gc

Company Appeal (AT) (Ins) No.849 of 2019