International Asset Reconstruction ... vs Jayant Vitamins Ltd
- CitationCompany Appeal (AT) (Insolvency) No. 1472 of 2019
Ratio decidendi
The rule this decision rests on
The Section 7 application under the Insolvency and Bankruptcy Code, 2016, filed after a suit for recovery had been decreed and execution was pending, was barred by limitation, because the default occurred long before the application and the creditor had already pursued its remedy through the civil suit. An application under Section 7 that is filed with a malicious intent, and not for the purpose of resolution of insolvency or liquidation of the corporate debtor, is liable to be dismissed under Section 65 of the Code.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
International Asset Reconstruction Co. Pvt. Ltd. ...Appellant
Vs
Jayant Vitamins Ltd. ...Respondents
Present: For Appellant: Mr. Amar Dave and Mr. Himanshu Bhushan, Advocates. For Respondents:
ORDER
17.12.2019: The Appellant - 'International Asset Reconstruction Co. Pvt.
Ltd.' filed application under Section 7 of the Insolvency and Bankruptcy Code,
2016 (hereinafter referred to as 'I&B Code') for initiation of Corporate Insolvency
Resolution Process against 'Jayant Vitamins Ltd.' (Corporate Debtor). The
Adjudicating Authority (National Company Law Tribunal), Indore Bench at
Ahmedabad by impugned order dated 8th November, 2019 dismissed the
application being barred by limitation.
2. The Corporate Debtor - 'Jayant Vitamins Ltd.' committed default on
13th September, 1996. Thereafter, Appellant filed suit for recovery which was
decreed on 17th October, 2005 and a case for execution is pending. Therefore,
we find that the application under Section 7 was barred by limitation.
Company Appeal (AT) (Insolvency) No. 1472 of 2019 -2-
3. Further, we are of the view that application under Section 7 was filed with
malicious intent, not for resolution of insolvency or liquidation, as covered under
Section 65 of the I&B Code.
4. In absence of any merit, the appeal is dismissed. No costs.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial)
[Justice Venugopal M.] Member (Judicial) am/sk
Company Appeal (AT) (Insolvency) No. 1472 of 2019
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