Eastern Ranges Flat Owners Welfare ... vs Phadnis Properties Ltd. & Ors
- CitationCompany Appeal (AT) (Insolvency)No.368 of 2018
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal will not interfere with an order of liquidation where more than 270 days have elapsed since the insolvency commencement and no other ground is shown to justify setting it aside, so that the claimant's contention that it should have been permitted to submit a resolution plan does not, on its own, warrant interference. During the liquidation process, the liquidator is bound to follow the procedure laid down by the Tribunal in the earlier decisions of S.C. Sekaran v. Amit Gupta and Y. Shivram Prasad v. S. Dhanapal, which the Tribunal adopts by reference, including the requirement that liquidation proceed in accordance with the provisions of Section 230 of the Companies Act, 2013.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Eastern Ranges Flat Owners Welfare Association, Pune .....Appellant Vs. Phadnis Properties Ltd. & Ors. ......Respondents
Present : For Appellant: Mr. Kumar Shashank with Ms. Prachi, Advocates
For Respondents: Mr. O.P. Madan, Mr. Utkarsh Mishra for Liquidator,R-3
O R D E R
14.03.2019 - This appeal has been preferred by Eastern Ranges Flat Owners
Welfare Association, Pune (Association of 'Financial Creditors') against order
dated 7th May, 2018 passed by the Adjudicating Authority (National Company
Law Tribunal), Mumbai Bench, Mumbai whereby the application u/s 33 of
Insolvency & Bankruptcy Code (I&B Code) filed by the Resolution Professional
has been allowed. The 'Corporate Debtor' - 'Phadnis Properties Ltd.' has been
ordered to be liquidated and liquidator has been appointed.
2) Learned Counsel appearing on behalf of the Appellant submits that
Appellant should have been allowed to file a Resolution Plan. However, as more
than 270 days have been passed, in absence of any other ground, we are not
inclined to interfere with the order of liquidation.
Company Appeal (AT) (Insolvency)No.368 of 2018 page 1
3) Learned Counsel appearing on behalf of Appellant submits that during the
liquidation process, the liquidator should follow the provisions of Section 230 of
the Companies Act, 2013. Reliance have been placed on the decision of this
Appellate Tribunal in the matter of "S.C.Sekaran Vs. Amit Gupta & Others
in Company Appeal (AT) (Insolvency) No. 495 & 496 of 2018" which was
disposed of on 29.01.2019 as followed in "Y. Shivram Prasad Vs. S. Dhanapal
& Ors. etc. Company Appeal (AT) (Insolvency) No. 224 of 2018 etc."
4) Having heard learned counsel for the Appellant and Shri G.P. Madan,
learned counsel for the liquidator, we are of the view that the liquidator
should follow the procedure as laid down in the matter of "S.C.Sekaran
Vs. Amit Gupta & Others" (Supra) and "Y. Shivram Prasad Vs. S.
Dhanapal & Ors. etc. (Supra) order dated 27.02.2019. The appeal stands
disposed of.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice A. I. S. Cheema] Member (Judicial) ss/gc
Company Appeal (AT) (Insolvency)No.368 of 2018 page 2
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