Kunal Dilip Patel vs George Samuel & Anr
- CitationCompany Appeal (AT)(Insolvency) No. 03 of 2023
Ratio decidendi
The rule this decision rests on
Where an application challenging the constitution of the Committee of Creditors is pending before the Adjudicating Authority alongside a liquidation application, and the Adjudicating Authority has dismissed the former as infructuous because the liquidation application remains undecided, that dismissal is set aside: the challenge must be considered and disposed of together with the liquidation application, since its outcome may have consequences if liquidation is not approved. Resolutions passed by a Committee of Creditors before its reconstitution, pursuant to such a challenge, do not affect the validity of its earlier resolutions.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Kunal Dilip Patel ...Appellant
Versus
George Samuel & Anr. ...Respondents Present: For Appellant : Mr. Palash S Singhai, Advocates.
For Respondents : Ms. Eshna Kumar and Ms. Prachi Bhatia, Advocates for R-1.
ORDER
25.05.2023: Order which has been impugned in this appeal is dated
15.11.2022 passed by the Adjudicating Authority in I.A. No. 588 of 2022 filed
by the Suspended Management as well as I.A. No. 722 of 2022 filed by RP.
Suspended Management has filed the I.A. in 2022 challenging constitution of
CoC. When the Application came for hearing, Adjudicating Authority asked the
learned Counsel whether the Application be treated as Reply to RP's
Application, which suggestion was not accepted. Hence the Application was
rejected holding it had become infructuous.
2. From the order dated 15.11.2022 it is clear that RP filed the Application
722 of 2022 praying for liquidation, the Adjudicating Authority called upon the
Management to file Reply to the Liquidation Application. The Liquidation
Application is still under consideration and has not been finally disposed of till
date.
Company Appeal (AT)(Insolvency) No. 03 of 2023 Page 1 of 2
3. The Liquidation Application being pending; we are of view that I.A. No.
588 of 2022 may also be considered which decision may have some
consequence in the event liquidation is not approved.
4. In view of the above, the order of the Adjudicating Authority holding that
the Application 588 of 2022 has become infructuous is set aside. I.A. No. 588
of 2022 may also be considered and disposed of along with the I.A. No. 722 of
2022. We however, make it clear that any resolution taken by the CoC before it
is reconstituted, if any, shall have no consequence on its earlier resolutions.
With the above observations, we dispose of this appeal.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical) akc/nn
Company Appeal (AT)(Insolvency) No. 03 of 2023 Page 2 of 2
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