Narayan Maheshwari vs Kavitha Surana & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 588 of 2019
Ratio decidendi
The rule this decision rests on
The reasoning in this order is brief but present. The Tribunal holds that the constitution of the Committee of Creditors, not being challenged in the appeal, cannot be decided in that appeal. It further holds that where no ground is made out for excluding any period from the computation of the 270-day period, the full period stands counted; and that where the Adjudicating Authority's earlier rejection of a prayer for exclusion is not under challenge, that rejection cannot be reopened in the appeal. On that footing, a liquidation order under Section 33 of the Insolvency and Bankruptcy Code, 2016 is rightly passed once more than 270 days have elapsed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Narayan Maheshwari .... Appellant
Vs
Kavitha Surana & Anr. .... Respondents
Present: For Appellant: Mr. Arun Kathpalia, Senior Advocate with Mr. Puneet Singh Bindra, Ms. Simranjeet and Mr. Saranpreet Singh, Advocates.
For Respondent:
ORDER
30.05.2019 Having heard learned Counsel for the Appellant, the delay of three days in preferring the Appeal is condoned. I.A. No.1796 of 2019 stands disposed of.
This Appeal has been preferred by Narayan Maheshwari, Shareholder/ Promoter of M/s Shri Veeraganapathi Steel Pvt. Ltd. ('Corporate Debtor') against order dated 12th April, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Single Bench, Chennai, whereby, order of liquidation under Section 33 of Insolvency and Bankruptcy Code, 2016 (I&B Code) has been passed.
Learned Counsel appearing on behalf of the Appellant submits that the 'Resolution Professional' had not acted in accordance with law and valid 'Expression of Interest' was called for after about 180 days. She has not worked on all the days. There are other allegations against the Resolution Professional', however, we are not inclined to entertain such allegations in this Appeal for the reasons stated below.
Company Appeal (AT) (Insolvency) No. 588 of 2019 Page 1 of 2 From the record we find that the 'Committee of Creditors' was constituted by 'Resolution Professional' well within time. The constitution of the 'Committee of Creditors' not being under challenge, cannot be decided in this Appeal.
In so far as, exclusion of certain period for counting the period of 270 days is concerned, though, prayer was made by 'Resolution Professional' before the Adjudicating Authority, we find no ground made out to exclude any period.
It is informed that the Adjudicating Authority earlier rejected the prayer for exclusion of period, but the said order of rejection is not under challenge. As we find that more than 270 days having been passed, the Adjudicating Authority rightly passed order under Section 33 of the I&B Code. We find no merit in this appeal. It is accordingly dismissed. No cost.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice A.I.S. Cheema] Member (Judicial)
[Kanthi Narahari] Member (Technical)
Ash/GC
Company Appeal (AT) (Insolvency) No. 588 of 2019 Page 2 of 2
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free