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Mr. Bhavik Rupapara vs Uttar Gujrat Vij Company Limited ...

National Company Law Appellate Tribunal20 December 2024Ashok Bhushan

Ratio decidendi

The rule this decision rests on

The Tribunal's reasoning rests on the following: where the Adjudicating Authority has not yet decided a pending application, and the appellate forum does not pass any finding on the merits of the service question, the appellate forum will not determine the disputed issue of service on the basis of an affidavit and postal tracking material, leaving that issue to be considered by the Adjudicating Authority when the matter is heard again. Adverse observations made by the Adjudicating Authority against a liquidator, which are not necessary for the decision of the matter before it, are to be read as not adverse to the liquidator in any subsequent proceeding, and the appellate forum may so direct without deciding the underlying facts.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHICompany Appeal (AT) (Insolvency) No. 2249 of 2024& I.A. No. 8458 of 2024

IN THE MATTER OF: Bhavik Rupapara, Liquidator of Nami Steel Pvt. Ltd. ...Appellant

Versus

Uttar Gujrat Vij Company Ltd. (UGVCL) ...Respondent

Present: For Appellant : Mr. Kushal Bansal, Mr. Anish Ahlawat, Advocates. For Respondent :

ORDER

(Hybrid Mode)

20.12.2024: Affidavit of service filed by the Appellant, as directed earlier,

is taken on record.

2. This Appeal has been filed against order dated 24.09.2024 passed by

NCLT, Ahmedabad Bench in IA No.982/AHM/2024. This appeal has been

filed by the Liquidator. The limited grievance raised is that the Adjudicating

Authority has made adverse observations against the Liquidator that service

has not been properly done upon the Respondent and some other

observations.

3. Affidavit of service which was filed before the Adjudicating Authority

has been brought on the record which indicate that service was effected by

email as well as through postal service and the tracking report which has

been brought on record indicate that items were delivered to UGVCL. We are

of the view that the issue regarding service may be taken up before the

Cont'd.../ 2

Adjudicating Authority when matter is heard again. We only observe that the

observations made against the Liquidator in the impugned order may not be

treated as adverse to the Liquidator in any proceeding.

4. Learned counsel for the Liquidator submits that only one counsel, Mr.

Masoom Shah, appears for the Liquidator, hence, observations on counsel for

the Liquidator were also not required to be made. We record the aforesaid

submission made by Liquidator that only one counsel appeared and was

heard for the Appellant.

5. With regard to observations made by the Adjudicating Authority

regarding liquidation process being conducted by the Liquidator, the

Adjudicating Authority has directed the Liquidator to be present on the next

date of hearing. It is open for the Liquidator to explain the process taken by

the Liquidator in the proceeding.

6. The Application having been listed for further consideration on

17.12.2024 and not yet decided, it is open for the Appellant to make all

submissions, when matter is heard again. With these observations, the

appeal is disposed of.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No. 2249 of 2024

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