M.K. Dhir & Anr vs Punjab National Bank & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 1028 of 2021
Ratio decidendi
The rule this decision rests on
The order gives reasons, though they are brief. The first is that an appeal against an order of the Adjudicating Authority, once the corporate insolvency resolution process has been initiated and no interim order staying that process subsists, does not warrant interference where the Adjudicating Authority has rightly directed the corporate debtor to hand over the assets and documents to the Resolution Professional, and has rightly rejected the application for review of that direction. A pending appeal against the order initiating the corporate insolvency resolution process does not, in the absence of an interim stay of that process, prevent the Adjudicating Authority from directing the corporate debtor to cooperate with the Resolution Professional and to hand over documents and possession of assets, and a review of such a direction is properly rejected where the direction was rightly made.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
M. K. Dhir & Anr. ...Appellants
Versus
Punjab National Bank & Anr. ...Respondents
Present: For Appellants: Mr. M. Dutta, Mr. Vivek Malik, Mr. Karan Aggarwal, Advocates. For Respondents: Mr. Prakahar Shrivastava, Mr. Apporv Sarvaria, Advocates for R-1. Mr. Abhishek Anand, Mr. Tanveer Oberoi, Advocates for R-2 (RP).
ORDER
(Virtual Mode)
23.12.2021: Heard. This Appeal has been filed against order dated
02.12.2021 passed by the Adjudicating Authority (National Company Law
Tribunal), New Delhi Court-IV in I.A. No. 4638/2021.
2. The Corporate Insolvency Resolution Process (CIRP) initiated against the
Corporate Debtor by order dated 24.05.2021. Subsequently, an order passed on
10.08.2021 by the Adjudicating Authority directing the Corporate Debtor to
cooperate with the Resolution Professional and handover the documents and
possession of assets. An application for review of the said order was filed, which
has been rejected by the impugned order.
Cont'd..../ -2-
3. An appeal has also been filed in this Appellate Tribunal against the order
dated 24.05.2021 initiating the CIRP, which is said to be pending. There is no
interim order in the said Appeal staying the process of CIRP.
3. On the Application filed by the Resolution Professional, the Adjudicating
Authority rightly passed order on 10.08.2021 for handing over the possession of
the assets to the Corporate Debtor and review of the said order has been rightly
rejected by the impugned order. We do not see any good ground to entertain this
Appeal. The Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Dr. Alok Srivastava] Member (Technical) Archana/nn.
Company Appeal (AT) (Insolvency) No. 1028 of 2021
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