Mansi Oils & Grains Pvt. Ltd vs United Bank Of India & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 920 of 2019
Ratio decidendi
The rule this decision rests on
An appeal under the Insolvency and Bankruptcy Code, 2016 filed at the instance of the corporate debtor, acting through its suspended Board, is not maintainable, in view of the Supreme Court's decision in Innoventive Industries Ltd. v. ICICI Bank as relied upon in the earlier order of 11 September 2019. Where the corporate debtor's appeal is not maintainable, the leave granted to substitute a shareholder or director as appellant and to implead the corporate debtor through its liquidator is conditional on a petition for substitution being filed within the time allowed; where no such petition is filed and no one appears for the appellant, the appeal stands dismissed, and the liquidation process continues.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mansi Oils & Grains Pvt. Ltd. ...Appellant Versus United Bank of India & Anr. ...Respondents Present: For Appellant : None For Respondents : Mr. Santosh K Rout and Ms. Neelam, Advocates for 1st Respondent Ms. Rachna Jhunjhunwala and Mr. Karan Mehra, Advocates for 'Liquidator'
ORDER
20.09.2019 Nobody appears on behalf of the Appellant. Counsel for the
Respondents are present. On 11th September, 2019, it was noticed that the
appeal is not maintainable at the instance of the 'Corporate Debtor' and the
following order was passed :
"In view of the fact that the appeal is not
maintainable at the instance of the 'Mansi Oils & Grains
Pvt. Ltd.' (Corporate Debtor) in view of the decision of
Hon'ble Supreme Court in "Innoventive Industries
Ltd. v. ICICI Bank (2018) 1 SCC 407" (Para 11). The
learned counsel for the Appellant prays for to file an
application for substitution by one of the
Shareholder/Director as Appellant and transpose the
'Mansi Oils & Grains Pvt. Ltd.' (Corporate Debtor) through
Liquidator as 2nd Respondent. It is also submitted that if
the application for substitution is allowed, the Appellant
may request to the Director/Shareholder to take part in the matter of arrangement/scheme under Section 230 of
the Companies Act, 2013.
Mr. Santosh Rao, Advocate appeared on behalf of
the 'Financial Creditor' (United Bank of India) and Mr.
Karan Mehra, Advocate appears on behalf of the
'Liquidator' along with Ms. Rachna Jhunjhunwala
'Liquidator'.
We accordingly allow the Appellant to file a petition
for substitution within a week.
Post the case 'for orders' on 20th September,
2019.
The appeal may be disposed of on the next date."
In spite of such liberty was given no petition for substitution has been filed
and nor anybody appears on behalf of the Appellant. In the circumstances, the
appeal is not maintainable at the instance of the 'Corporate Debtor' through
Director of suspended Board.
The appeal is dismissed. In absence of any order, the 'Liquidation' process will continue.
[Justice S.J. Mukhopadhaya] Chairperson
[ Justice A.I.S. Cheema ] Member (Judicial)
[ Kanthi Narahari ] Member (Technical) /ns/sk Company Appeal (AT) (Insolvency) No. 920 of 2019
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