M/S Apple Sponge And Power Ltd vs Punjab National Bank

Apple Sponge & Power Ltd. ...Appellant(s)

Versus

Punjab National Bank ...Respondent(s)

Present: For Appellant : Mr. Gaurav Mitra, Mr. Manohar Malik, Advocates For Respondents : Mr. Rajinder Wali, Advocate

ORDER

(Hybrid Mode)

31.01.2024: Heard Learned Counsel for the parties.

2. This Appeal has been filed against the Order dated 09.01.2024 passed

by the Adjudicating Authority in I.A. No. 4350 of 2023. The Application has

been filed by the Financial Creditor praying for amendment in the Part-IV of

the Application. The Adjudicating Authority by Impugned Order has allowed

the Application and has permitted the Appellant to change the date of default

as 31st March, 2014 and the amount of Rs. 1,87,68,23,362/-.

3. Learned Counsel-Mr.Gaurav Mitra appearing for the Appellant submits

that date of default which was initially mentioned could not be allowed to be

changed since the question of limitation shall also arise. It is further

submitted that the Adjudicating Authority has made the observation in

paragraph 13 touching the merits on the issues which was uncalled for since

the Adjudicating Authority was only deciding the Amendment Application. 2

4. Learned Counsel for the Respondent replying the submissions of the

Appellant contends that date of NPA was mentioned in the Application and

there was decree by DRT dated 19th September, 2019 on that basis, the date

of default was picked.

5. We have considered the submissions of Learned Counsel for the parties

and perused the record.

6. It is well settled now that amendments in Part-IV is permissible and

Financial Creditor can amend the application which amendment application

is to be considered on the facts of the case and change of date of default has

to be examined with regard to the facts of each of the case. Here the date of

default which is sought to be now amended in the Application was date of

NPA which is a matter of public record and date of NPA have been permitted

to be added. Apprehension of the Appellant are misconceived that by the date

of NPA, all other arguments which are open to the Corporate Debtor shall be

lost. We make it clear that amendments in no manner shall preclude the

Corporate Debtor to raise all the issues on merits including the limitation, if

any. We further observe that observations in paragraph 13 of the Order

cannot be treated to be expression of opinion on merits of the issues involved

in the Application and the said observations were only for the purpose of

deciding the amendment application and treated to be confined to the decision

of the amendment application.

7. We thus are of the view that no grounds have been made out to interfere

with the Impugned Order allowing the amendment application.

Company Appeal (AT) (Insolvency) No.196/2024 3

8. Learned Counsel for the Respondent submits that amended petition is

yet to be filed. Let amended petition be filed within two weeks from today.

Corporate Debtor shall also have two weeks' time to file Reply to the amended

petition.

With the aforesaid direction(s), we dispose of the Appeal.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) Basant/nn

Company Appeal (AT) (Insolvency) No.196/2024