Mirambica Infrastructure Pvt Ltd vs Sanskrut Jewel Residency Llp & Ors ...
- CitationCompany Appeal (AT) (Insolvency) No. 229 of 2021
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal's disposal of the appeal rests on the principle that, under Section 9(5) of the Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority is required to pass an order of admission or rejection of an operational creditor's application within fourteen days of its receipt, and that the pre-admission stage is not to be converted into adversarial litigation given the time-bound character of the Corporate Insolvency Resolution Process.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mirambica Infrastructure Pvt. Ltd. ....Appellant Vs. Sanskrut Jewel Residency LLP & Ors. ....Respondents (hereinafter referred as the Corporate Debtor)
Present: Appellant: Mr. Sachin Naveen Sinha, PCS.
Respondents: ORDER
(Through Virtual Mode)
24.03.2021: The Appellant, who happens to be the Operational Creditor having filed Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for short 'the I&B Code') before the Adjudicating Authority (National Company Law Tribunal) Ahmedabad Bench, Ahmedabad, Court-2 is aggrieved of the impugned order dated 19th February, 2021 by virtue whereof the matter was adjourned to 23rd March, 2021.
2. It is submitted by Mr. Sachin Naveen Sinha, PCS representing the Appellant - Operational Creditor that the Application filed under Section 9 of the I&B Code in the year 2019 is still pending consideration for admission and the order has been reserved on 23rd March, 2021 only to decide the Intervention Application.
3. After hearing Mr. Sachin Naveen Sinha, PCS we deem it appropriate to dispose of this Appeal emphasising upon the Adjudicating Authority to abide by
Cont'd..../ -2-
the mandate of Section 9(5) of the I&B Code, which provides for passing of an order of 'admission' or 'rejection' of the Application of Operational Creditor filed under Section 9 of the I&B Code within 14 days of the receipt of such Application. The Adjudicating Authority, not being a Civil Court and it being enjoined upon it to conduct the Corporate Insolvency Resolution Process in a time bound manner as delineated by the I&B Code, should not allow the pre-admission proceedings to be converted into an adversarial litigation. Speed being the password in CIRP proceedings, the Adjudicating Authority has to act in a swift manner and not allow the proceedings to be hijacked by a person or entities to put a spoke in the wheel, so as to render the process nugatory. The Adjudicating Authority would do well by focusing upon the issue in regard to admission or otherwise to consider the Application on merit and pass an order in that regard most expeditiously, preferably within 10 days. The Appeal is accordingly disposed off.
3. Copy of this order be communicated to the Adjudicating Authority
forthwith.
[Justice Bansi Lal Bhat] Acting Chairperson
[Dr. Ashok Kumar Mishra] Member (Technical)
Ash/GC Company Appeal (AT) (Insolvency) No. 229 of 2021
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