Haresh Bhansali vs Amit Gupta
- CitationCompany Appeal (AT) (Insolvency) No. 439 of 2025
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority is competent to permit amendment of the cause title of a pending application on the strength of a Committee of Creditors (SCC) resolution recording an assignment of that application, even where no separate formal application for amendment has been filed. Objections to the substance of a pending application, including the validity of its assignment, are not decided at the stage of permitting a consequential amendment of the cause title; they remain open to be raised by the affected party when the application itself is heard.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Haresh Bhansali ...Appellant
Versus
Amit Gupta & Ors. ...Respondents
Present: For Appellant : Mr. Abhishek Anand, Mr. Kunal Kanungo, Ms. Niharika Sharma, Mr. Atishay M. Jain and Ms. Palak Kalra, Advocates.
For Respondent : Ms. Geeta Toraskar, Advocate for R-1. Mr. Prakash Shinde, Advocate
ORDER
(Hybrid Mode)
02.05.2025 I.A. No. 1681 of 2025 This is an application praying for
condonation of 15 days delay in filing the Appeal. We find sufficient cause has
been shown in paragraphs 2(xvii), iii to vii of the application for condonation
of delay. Delay condoned.
2. Heard Learned Counsel for the Appellant as well as Learned Counsel
appearing for the Respondent No.2. This Appeal has been filed against order
dated 08.01.2025 by which order Adjudicating Authority in I.A. No.
2437/2019 issued following directions:
"I.A. 2437/2019
Pursuant to order dated 01.08.2024 read with order dated 11.11.2024, Learned Counsel for the Applicant submits that the necessary amendments in the cause title have been carried out.
However, in the absence of a formal order the registry has not accepted the amendment. We therefore, allow the amendments to be carried out in the application and directed registry to take note of the revised cause title. The applicant is directly to serve a copy of the amended portion of the petition.
List this matter on 27.02.2025."
3. The I.A. No. 2437/2019 is avoidance application which was filed by
Liquidator. In the said application, Adjudication Authority on 01.08.2024
passed following order:
"I.A. 2437/2019
Learned counsel for the Liquidator submits that according to the Resolution passed in SCC meeting held on 03.02.2023, the Application bearing I.A. No. 3437/2019 under Sections 45, 49, 50 and 66 has been assigned to the Secured Creditors namely Bank of India and Union Bank of India and the proceeds of the same shall be distributed among them in their admitted claim ratio.
Therefore, the Advocate representing the SCC seeks instruction to carry out necessary amendments in the Assignment. List this matter on 23.09.2024."
4. In order dated 01.08.2024 correction was made in place of assignment
in the last but one line word application was substituted by order dated
11.11.2024. Appellant who is Suspended Director the Corporate Debtor
aggrieved by the order has come up this appeal.
Company Appeal (AT) (Insolvency) No. 439 of 2025 2 of 4
5. Learned Counsel Mr. Abhishek Anand submits that application which
was filed by the Liquidator, the Adjudicating Authority ought to not to have
directed for carrying out amendment in application as per earlier order dated
01.08.2024. He submits that no application for amendment was filed in I.A.
No.2437/2019 and hence no amendment could have been carried out. When
we look into the order passed on 01.08.2024, the Adjudicating Authority has
noticed the resolution of the SCC meeting on 03.02.2023 where application
has been assigned to the secured creditors and on the basis of said minutes
of 03.02.2023. Adjudicating Authority granted instruction to carry out the
amendment in the application and since the registry was not permitting carry
out the amendment order dated 08.01.2024 was passed.
6. Submission of the Appellant that for carrying out every amendment an
application is required to be filed in the facts of the present case does not
commend us. The Adjudicating Authority was fully competent to permit
amendment in the cause title, in view of the resolution of the SCC 03.02.2023.
However, application I.A. No. 2437/2019 has not yet been decided and its
pending consideration. It is open for the Appellant to raise all objections to
the applications including the question of assignment, when the application
is heard.
Company Appeal (AT) (Insolvency) No. 439 of 2025 3 of 4
7. We do not find any error in the order of the Adjudicating Authority
permitting carrying out the amendment by the impugned order dated
01.08.2024. With these observations, we dismiss the Appeal.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Arun Baroka] Member (Technical) pks/md
Company Appeal (AT) (Insolvency) No. 439 of 2025 4 of 4
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