Harendra Singh Rathore & Ors vs Alchemist Asset Reconstruction ...
- CitationCompany Appeal (AT) (Insolvency) No. 659 of 2018
Ratio decidendi
The rule this decision rests on
The order approving a resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 cannot be challenged in an appeal beyond the period prescribed by sub-section (2) of Section 61 of the Code, and an appeal filed outside that period, without any application for condonation of delay within the Tribunal's permissible extension, is liable to be dismissed as barred by limitation. Where an order admitting an application under Section 7 has not been set aside by the Appellate Tribunal and has become final, a challenge to a later order approving a resolution plan cannot indirectly reopen the earlier admission order, and no relief can be granted on that basis.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Harendra Singh Rathore & Ors. ...Appellants
Vs.
Alchemist Asset Reconstruction Company Ltd. & Ors. ...Respondents
Present: For Appellants: - Mr. Sanjeev Kumar Tyagi, Mr. Siddharth Chaudhary and Ms. Mansi Batra, Advocates.
ORDER
29.10.2018─ This appeal has been preferred by Harendra Singh
Rathore & Ors., shareholders of 'Hotel Gaudavan Pvt. Ltd.'- ('Corporate
Debtor') challenging the order dated 13th December, 2017 passed by the
Adjudicating Authority (National Company Law Tribunal), Principal
Bench, whereby the 'Resolution Plan' submitted by 'JFC Finance (India)
Limited' has been approved under Section 31 of the Insolvency and
Bankruptcy Code,2016 ('I&B Code' for short).
2. Learned counsel for the Appellant referring to the decision of the
Hon'ble Supreme Court in 'B.K. Educational Services Pvt. Ltd. V/s.
Parag Gupta─ Civil Appeal No. 23988/17 etc." submitted that
Contd/-..............
-2-
initiation of 'Corporate Insolvency Resolution Process' was barred by
limitation. It being void, the impugned order of approval of the 'Resolution
Plan' cannot be accepted.
3. Admittedly, the 'Corporate Insolvency Resolution Process' against
'Hotel Gaudavan Pvt. Ltd.'- ('Corporate Debtor') was initiated on 31st
March, 2017. The said order is not under challenge, therefore, no finding
can be given with regard to the legality and proprietary of the order dated
31st March, 2017.
4. It has also come to our notice that the order of admission of
application under Section 7 filed against 'Hotel Gaudavan Pvt. Ltd.'-
('Corporate Debtor') was challenged before this Appellate Tribunal. As this
Appellate Tribunal did not interfere with the said order, learned counsel
for the Appellant withdrew the said case. Thereby the order of admission
dated 31st March, 2017 reached the finality. While challenging the order
of the approval of the 'Resolution Plan' dated 13th December, 2017,
indirectly Appellant cannot challenge the order dated 31st March, 2017.
Therefore, no relief can be granted.
5. Further, we find that the present appeal is barred by limitation in
view of sub-section (2) of Section 61 of the 'I&B Code'. The order dated
13th December, 2017 has been challenged in this appeal filed on
Company Appeal (AT) (Insolvency) No. 659 of 2018 -3-
10th October, 2018 i.e. much beyond the period of limitation and period
allowed to this Appellate Tribunal to condone the delay.
6. In view of the aforesaid findings, we dismiss this appeal both on
the ground of limitation and on merit. No cost.
(Justice S.J. Mukhopadhaya) Chairperson
(Justice Bansi Lal Bhat) Member(Judicial) Ar/uk
Company Appeal (AT) (Insolvency) No. 659 of 2018
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