Mr. Kashyap Deorah vs Ayg Realty Private Limited
- CitationCompany Appeal (AT) (Insolvency) No. 611 of 2022
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal declined to entertain an appeal against an order permitting withdrawal of a Section 7 application on the basis of consent terms, and did so on the ground that the appellant could instead apply to the Adjudicating Authority for revival of the application upon showing a breach of the consent terms. The reasoning therefore rests on the principle that where an alleged breach of consent terms is a matter for the Adjudicating Authority to determine on application, an appellate challenge to the withdrawal order is not entertained and the aggrieved party is left to that remedy.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Kashyap Deorah ...Appellant
Versus
AYG Realty Pvt. Ltd. ...Respondent
Present: For Appellant: Mr. Y. V. Divekar and Ms. Maitreya Shetty, Advocates. For Respondent: Mr. Abhijeet Sinha and Mr. G. Aniruth Purusothaman, Advocates.
ORDER
(Virtual Mode)
07.07.2022 Heard learned counsel for the Appellant and Shri Abhijeet
Sinha appearing for the Respondent. This Appeal has been filed against the
impugned order dated 24.03.2022 by which the Adjudicating Authority
noticing the facts has permitted withdrawal of the petition on the basis of the
Consent Terms executed between the parties on 18.11.2021.
2. Learned counsel for the Appellant submits that there is already breach
of the Consent Terms but no permission was granted in the impugned order
to revive the Section 7 Application.
3. Learned counsel for the Respondent disputed that there is any default
on the part of the Respondent.
3. In view of the aforesaid, we see no reason to entertain this Appeal. The
Appellant shall be at liberty to file an application before the Adjudicating
Cont'd.../ 2
Authority for revival of the Section 7 Application on satisfaction of the
Adjudicating Authority that there is a breach of the Consent Terms. The
Appeal is disposed off accordingly.
[Justice Ashok Bhushan] Chairperson
[Justice M. Satyanarayana Murthy] Member (Judicial)
[Naresh Salecha] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No. 611 of 2022
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