Lakshmi Energy & Foods Ltd vs Icici Bank Ltd
- CitationCompany Appeal (AT) (Insolvency)No.784 of 2019
Ratio decidendi
The rule this decision rests on
The appeal is dismissed without interference with the Adjudicating Authority's refusal to grant further adjournment, and the reasoning rests on the following: where a corporate debtor has repeatedly obtained adjournments of a Section 7 application under the Insolvency and Bankruptcy Code, 2016, and the Adjudicating Authority has earlier directed that pleadings be completed before the next date, the Adjudicating Authority is entitled to refuse a further adjournment sought on the ground that an appeal or special leave petition is pending elsewhere, where no stay of the insolvency proceedings has been granted by any court. Pendency of proceedings before a higher forum, without an order staying the insolvency proceedings, does not by itself prevent the Adjudicating Authority from proceeding with the hearing of the application under Section 7 of the Code. Where the Adjudicating Authority has already concluded hearing and reserved orders on the application, the appellate tribunal will not interfere with an interlocutory order refusing adjournment, the remedy being preserved for the aggrieved party to appeal against the final order when passed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Lakshmi Energy & Foods Ltd. .....Appellant Vs. ICICI Bank Ltd. ......Respondent
Present : For Appellant: Mr. R. Rudreshwar Singh, Mr. Gautam Singh, Advocates
For Respondents: Mr. Anand Shankar Jha, Advocate
O R D E R
02.08.2019 - The Appellant - 'Lakshmi Energy & Foods Ltd.' ('Corporate
Debtor') has preferred this appeal against the order dated 11th July, 2019 passed
by the Adjudicating Authority ('National Company Law Tribunal') Chandigarh
Bench, Chandigarh which reads as follows:-
CA No. 475/2019
"This application dated 08.07.2019 is
in a way another attempt to seek adjournment on
the ground that the respondent-corporate debtor
has filed SLP before the Hon'ble Supreme Court.
....contd.
2
The learned counsel for the petitioner strongly
contests the same and submits that there is no stay
granted by any Court for proceedings under the
Insolvency and Bankruptcy Code, 2016. It is
noticed that number of opportunities were granted
on earlier occasions and on the previous dated of
26.04.2019, after seeing the conduct and delay in
the proceedings, it was made clear that pleadings
be completed in the main case well in advance
before the next date and the matter was adjourned
to 11.07.2019"
2. The application u/s 7 of the Insolvency & Bankruptcy Code, 2016 ('I&B'
Code, for short) was filed by 'ICICI Bank Ltd.' ('Financial Creditor') for initiation
of 'Corporate Insolvency Resolution Process' against the Appellant - 'Lakshmi
Energy & Foods Ltd.' in the year 2018 which remained pending for about one
year after one or other ground. The matter was adjourned on the request of the
Appellant who earlier moved before the Hon'ble High Court and thereafter before
the Hon'ble Supreme Court which were also dismissed. For the reason aforesaid,
the Adjudicating Authority refused to grant more time to the Appellant and the
impugned order was passed.
...contd.
3
3. Mr. Anand Shankar Jha, learned counsel appearing on behalf of the ICICI
Bank Ltd. submits that hearing of application u/s 7 of the 'I&B' Code preferred
by ICICI Bank Ltd. have already been concluded and order has been reserved by
the Adjudicating Authority.
4. In the facts and circumstances of the case, we are not inclined to interfere
with the impugned order. However, this order will not come in the way of
aggrieved person to prefer appeal, if against the order as may be passed by the
Adjudicating Authority.
The appeal is disposed of with the aforesaid observation. No costs.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice A. I. S. Cheema] Member (Judicial)
[Kanthi Narahari] Member (Technical)
ss/gc
Company Appeal (AT) (Insolvency)No.784 of 2019
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