Indotech Industrial Solutions Pvt Ltd vs Vishal Steels
- CitationComp. App. (AT) (Insolvency) No. 1028 of 2023
Ratio decidendi
The rule this decision rests on
A corporate debtor which appears in Section 9 proceedings but neither files a reply nor takes any step to do so for an extended period cannot later raise the plea of pre-existing dispute in appeal, as no objection was taken before the Adjudicating Authority and the point therefore cannot be examined. Where the Adjudicating Authority has found the debt due and the default established, an application under Section 9 is properly admitted, and an appeal against such admission that raises no substantive ground is liable to be dismissed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Indotech Industrial Solutions Pvt. Ltd. ....Appellant Vs. Vishal Steels ...Respondent For Appellant: Mr. Raghavendra Pratak Singh, Mr. Kailash Autade, Mr. Sunil Kumar Sethi, Advocates. For Respondent:
ORDER
02.08.2023: Heard Learned Counsel for the Appellant.
2. This Appeal has been filed against the order passed by the Adjudicating
Authority (National Company Law Tribunal) admitting Section 9 Application.
The Appellant- Suspended Director of the Corporate Debtor who on the date
when the matter was heard appeared and asked for time from the Adjudicating
Authority. The Adjudicating Authority in paragraph 5 has returned a finding
that Corporate Debtor has appeared on 22.04.2022, 19.07.2022 and
03.11.2022 but did not choose to file reply.
3. Learned Counsel for the Appellant submitted that there was pre-existing
dispute and Operational Creditor has not disclosed the said submission in the
Application and they should be punished under Section 76.
4. We have considered the submissions of the Appellant and perused the
record.
2
5. The Corporate Debtor had appeared in the proceedings in the year 2022
which is recorded in the order dated 22.04.2022. For more than a year neither
reply has been filed nor any step was taken by the Corporate Debtor regarding
filing of the Reply. The Corporate Debtor choose to watch the proceedings and
took a chance. No objection having been filed by the Corporate Debtor, the
submission made by the Counsel for the Appellant regarding pre-existing
dispute cannot be examined nor can be raised in this Appeal. We are of the
view that the Adjudicating Authority having found debt due and default has
rightly admitted the Application.
6. We do not find any substance in the Appeal. The Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Anjali/nn
Comp. App. (AT) (Insolvency) No. 1028 of 2023
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