Global Steel Company vs Jbf Petrochemical Ltd
- CitationCompany Appeal (AT) (Insolvency) No. 453 of 2020.
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal declined to decide the appeal on its merits, having been told that a Section 9 admission order against the same corporate debtor had already been passed in another proceeding and that a corporate insolvency resolution process had begun. The disposal rests on the following reasoning, which has no independent legal principle beyond the procedural course: Where a corporate insolvency resolution process has already been initiated against a corporate debtor, a separate appeal against the rejection of a Section 9 application against that same debtor need not be decided on its merits, and the appellant's remedy lies in filing its claim within the ongoing insolvency resolution process.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Global Steel Company ...Appellant
Versus
JBF Petrochemicals Ltd. ...Respondent
Present: For Appellant: Mr. Jayant Mehta, Sr. Advocate with Ms. Krutika Raghavan, Advocate. For Respondent: Mr. Shikhil Suri, Ms. Nikita Thapar, Ms. Madhu Suri and Ms. Prerana Wagh, Advocates.
ORDER
(Virtual Mode)
10.02.2022: Heard learned counsel for the parties. This Appeal has been
filed against the judgment and order dated 03.02.2020 passed by the
Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench,
Ahmedabad in C.P. (I.B) No. 432/NCLT/AHM/2018 by which the application
filed by the Appellant under Section 9 of the Insolvency and Bankruptcy Code,
2016 (hereinafter referred to as 'Code') was rejected by the Adjudicating
Authority. This Appeal has been filed challenging the order on grounds as
enumerated in the memo of appeal.
2. Learned counsel for the Corporate Debtor at the very outset pointed out
that against the same Corporate Debtor there has been order by this Tribunal
for admitting application under Section 9 and Corporate Insolvency Resolution
Process has already begun against the Corporate Debtor. He has referred to
judgment dated 20.12.2021 passed in Company Appeal (AT) (Ins.) No. 524 of
2020 in the matter of 'M/s IDBI Capital Markets & Securities Ltd. vs. M/s JBF
Cont'd.../ -2-
Petrochemicals Ltd.' as well as order dated 06.01.2022 passed in Company
Appeal (AT) (Ins.) No. 961 of 2020 in the matter of 'Kewaunee Labway India
Pvt. Ltd. vs. M/s JBF Petrochemicals Ltd.'. Learned counsel further submits
that insolvency resolution process has begun in application under Section 9
and Interim Resolution Professional has been appointed in Company Petition
(IB) 232 of 2018.
3. In view of the above, we see no reason to proceed with this Appeal on
merits. Insolvency resolution process has already been initiated against the
Corporate Debtor and it is open for the Appellant to file its claim in the
aforesaid process.
4. Learned counsel for the Appellant submits that this Court may protect
his interests by observing that while considering claim of the Appellant to be
filed in insolvency resolution process the claim shall not be prejudiced in any
manner by impugned judgment dated 03.02.2020.
5. In view of the aforesaid, we observe that the claim of the Appellant to be
filed in insolvency resolution process be considered in accordance with law
without being influenced by any of the observations made in the order dated
03.02.2020. With these observations, this Appeal is disposed of.
[Justice Ashok Bhushan] Chairperson
[Dr. Alok Srivastava] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No. 453 of 2020
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