Director Of Commercial Taxes vs Ruchi Soya Industries Ltd. & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 407 of 2020
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal has no jurisdiction to entertain an appeal under Section 61(2) of the Insolvency and Bankruptcy Code, 2016 filed beyond the 30-day period, where the delay exceeds the 15-day condonable extension, and the appeal must therefore be dismissed. The Appellate Tribunal cannot sit in appeal over the commercial wisdom of the Committee of Creditors, and cannot annul a resolution plan on that basis, in view of the Supreme Court's decision in Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta, as applied by the Tribunal in this order.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Directorate of Commercial Taxes ...Appellant
Versus
Ruchi Soya Industries Ltd. & Ors. ...Respondents
Present:
For Appellant : Ms. Madhumita Bhattacharjee, Advocate and Ms. Aarti Jain, Company Secretary
ORDER
12.03.2020 The Appellant - Directorate of Commercial Taxes, after long
delay, challenged the order dated 24th July, 2019 passed by the Adjudicating
Authority (National Company Law Tribunal), Mumbai Bench whereby 'corporate
insolvency resolution process' against 'Ruchi Soya Industries Limited' (Corporate
Debtor) has been closed by approving the 'resolution plan' of 'successful
resolution applicant'. Learned counsel for the Appellant submits that the
certified copy of the same has been obtained on 16th January, 2020 and the
appeal has been preferred before this Appellate Tribunal on 2nd March, 2020.
Thus, we find that there is more than 17 days delay after 30 days of the time to
file the appeal in terms of Section 61(2) of the 'I&B Code'.
For the said reason, we cannot entertain the appeal having no jurisdiction
to condone the delay of more than 15 days after 30 days.
Learned counsel for the Appellant submits that the 'resolution plan' has
been received by the Appellant on 7th February, 2020 but that cannot be a ground to entertain the appeal for approval of the 'resolution plan' which was
passed on 24th July, 2019. Further in view of the decision of the 'Committee of
Creditors of Essar Steel India Limited vs. Satish Kumar Gupta & Ors. -
(2019) SCC Online SC 1478', this Appellate Tribunal cannot sit in appeal on
commercial wisdom of the 'Committee of Creditors' and to annul the resolution
plan. Further in view of the decision of the Hon'ble Supreme Court the matter
cannot be re-opened in any other litigation.
The appeal is dismissed. No costs.
[Justice S.J. Mukhopadhaya] Chairperson
[ Justice Bansi Lal Bhat ] Member (Judicial)
[ Shreesha Merla ] Member (Technical)
/ns/gc/
Company Appeal (AT) (Insolvency) No. 407 of 2020
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