Connecting People Of India vs G. S. P Power Systems Private Limited S
- CitationCompany Appeal (AT) (Ins) No. 844 of 2023
Ratio decidendi
The rule this decision rests on
Where a default occurred within the period covered by Section 10A of the Insolvency and Bankruptcy Code, 2016, no application under Section 9 of the Code can be entertained in respect of that default, and the bar in Section 10A operates to prevent initiation of the proceeding for a default committed within that period. The fact that the Section 9 application was filed or proceedings were initiated after the Section 10A period has ended does not take the application outside the bar, since the operative question is the date of default and not the date of initiation.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Connecting People of India ...Appellant
Vs.
G.S.P. Power Systems Pvt. Ltd. ...Respondent
Present:
For Appellant: Mr. Joy Scaria, Ms. M. Priya, Advocates
For Respondent:
ORDER
14.07.2023: IA No. 2867 of 2023 - This Appeal has been filed against the
order dated 17.03.2023. The appeal having been e-filed on 29.04.2023, there is
a delay of 13 days in filing the Appeal. The cause shown in the affidavit is that
the officials of the Appellant were involved in discussion and there was a re-
emergence of Corona Virus Pandemic. Sufficient cause has been shown to
condone the delay. Delay condoned.
Heard Learned Counsel for the Appellant.
2. This Appeal has been filed against the order dated 17.03.2023 by which
order, Adjudicating Authority has rejected the application on the ground of bar
u/s 10 A.
3. Learned Counsel for the Appellant submits that invoices were given in
October 2010 and the huge default of about Rs. 4 crores have been committed.
4. We have heard the Learned Counsel for the Appellant and peruse the
records.
5. In paragraph 18 of the order, the Adjudicating Authority has noted the
following facts:-
"18. On the perusal of the fact in the
present petition, it is to be stated that the date of
Company Appeal (AT) (Ins) No. 844 of 2023 & I.A. NO. 2867 of 2023
1 default mention in the given case is 05.11.2020
and 25.11.2020. Therefore, by virtue of Section
10A of the Insolvency and Bankruptcy Code,
2016, such period is liable to be excluded for
initiating Corporate Insolvency Resolution Process
and hence, the present petition finds no stand."
6. Both the dates 5.11.2020 and 25.11.2020 being covered within the period
u/s 10A, no application u/s 9 could have been filed for the said default.
7. We do not find any error in the order rejecting Section 9 application. It
shall, however, be open for the Appellant to take such remedy as available in law
with regard to the grievance and non-payment.
8. Learned Counsel for the Appellant submits that proceedings were not
initiated during the period when the 10A creates the bar rather proceedings were
initiated subsequent to the said period. We are of the view that Section 10A
creates the bar in initiating the proceedings for the default committed u/s 10A
period. The mere fact that proceedings were subsequent to the said period will
not save the Applicant from the bar u/s 10A.
With these observations, the Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical)
ss/nn
Company Appeal (AT) (Ins) No. 844 of 2023 & I.A. NO. 2867 of 2023
2
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free