Haravtar Singh Aror vs Punjab National Bank & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 567 of 2018
Ratio decidendi
The rule this decision rests on
The power to engage an accountant, valuer, legal or other professional on behalf of the corporate debtor's insolvency process is vested in the Resolution Professional under Section 25(d) of the Insolvency and Bankruptcy Code, and an appointment made under that power is not rendered illegal by a challenge of the kind advanced here. Upon the commencement of the moratorium, under Section 14 of the Insolvency and Bankruptcy Code, all proceedings pending before any court against the corporate debtor automatically come to a halt and cannot be decided, and the Resolution Professional is therefore not required to take any further step to stop such pending proceedings.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Haravtar Singh Arora ...Appellant
Vs.
Punjab National Bank & Ors. ...Respondents
Present: For Appellant: - Mr. D.K. Devesh and Ms. D. Geetha, Advocates.
For Respondents: - Mr. Rajesh Kr. Gautam and Mr. Aakash Sehrawat, Advocates for R-1 Mr. Amish Tandon, Mr. Ayush and Mr. Shameer, Advocates for R-1.
ORDER
20.09.2018─ This appeal has been preferred by the Director of
'James Hotels Limited'- ('Corporate Debtor') against the order dated 8th
August, 2018 passed by the Adjudicating Authority (National Company
Law Tribunal), Chandigarh Bench, Chandigarh, after delay of two days.
2. Having heard learned counsel for the Appellant and Mr. Amish
Tandon, learned counsel appearing on behalf of the 'Resolution
Professional', delay of two days is condoned.
3. Learned counsel for the Appellant submits that the appointment of
the 'Valuer'/'Accountant' is not legal but we are not inclined to accept
such submission as the power to engage an Accountant, legal or other
Contd/-...............
-2-
professional is vested with the 'Resolution Professional' under Section 25
(d) of the 'I&B Code'.
4. It was then contended that during the period of 'Moratorium' cases
pending against the 'Corporate Debtor' has not been stopped by the
'Resolution Professional' but such submission cannot be accepted as in
terms of Section 14 of the 'I&B Code', all the proceedings pending before
all court against the 'Corporate Debtor' automatically comes to halt and
cannot be decided. Therefore, the 'Resolution Professional' is not required
to take any further step.
5. We find no merit in this appeal. It is accordingly dismissed.
However, in the facts and circumstances of the case, there shall be no
order as to cost.
(Justice S.J. Mukhopadhaya) Chairperson
(Justice Bansi Lal Bhat) Member(Judicial) Ar/uk
Company Appeal (AT) (Insolvency) No. 567 of 2018
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