Pankaj Jajoo vs Asset Reconstruction Company (India) ...

Pankaj Jajoo ...Appellant

Vs.

Asset Reconstruction Company (India) Ltd. ...Respondent

Present: For Appellant: - Mr. Pratik Tripathi, PCS.

For Respondent: - Mr. Bishwajit Dubey, Advocate.

O R D E R

28.03.2019─ An application under Section 7 of the Insolvency and

Bankruptcy Code, 2016 ("I&B Code" for short) has been filed by 'M/s.

Asset Reconstruction Company (India) Limited'- ('Respondent' herein) for

initiation of the 'Corporate Insolvency Resolution Process' against 'M/s.

Dhar Textile Mills Limited'- ('Corporate Debtor'). The said application

having admitted by the impugned order dated 15th February, 2019, the

Appellant- Shareholder and Managing Director of the 'Corporate Debtor'

has challenged the same.

2. Learned counsel appearing on behalf of the Appellant submits that

the Respondent- 'M/s. Asset Reconstruction Company (India) Limited' is

not the assignee but a trust of the assignee. It does not come within the

meaning of the 'Financial Creditor'.

Contd/-.................

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3. According to him, the main assignee namely-- 'Arcil- The Dhar

Textile Mills Ltd. Trust', who is the 'Financial Creditor', has not

authorised 'M/s. Asset Reconstruction Company (India) Limited'-

('Respondent' herein) to file an application under Section 7 of the 'I&B

Code'.

4. Learned counsel for the Appellant relied on Form-1 and submits

that no 'Deed of Assignment' was enclosed in Form-1 by the Respondent

to suggest that it is the assignee of the 'Corporate Debtor'.

5. Mr. Bishwajit Dubey, Advocate appears on behalf of Respondent-

'M/s. Asset Reconstruction Company (India) Limited'. He has disputed

such claim.

6. From the record of the appeal, we find that a 'Deed of Assignment'

was signed on 29th March, 2006 between the 'State Bank of India'- (the

'Principal Financial Creditor') and the 'Standard Chartered Bank' and

since 29th March, 2006, the 'Standard Chartered Bank' became the

assignee. Subsequently, the 'Standard Chartered Bank' assigned the debt

in favour of the Respondent- 'M/s. Asset Reconstruction Company (India)

Limited' by 'Assignment Agreement' dated 22nd March, 2013.

Company Appeal (AT) (Insolvency) No. 312 of 2019 -3-

7. Pursuant to the said 'Deed of Assignment' dated 22nd March, 2013,

the Respondent- 'M/s. Asset Reconstruction Company (India) Limited'

has become the assignee. It is also verified from the facts that the

'Corporate Debtor' accepted that the Respondent- 'M/s. Asset

Reconstruction Company (India) Limited' was the final assignee and

issued cheques in favour of the said Respondent.

8. In view of such assignment, we hold that the application under

Section 7 filed by Respondent- 'M/s. Asset Reconstruction Company

(India) Limited' was maintainable. The Appellant having already enclosed

the two aforesaid 'Assignment Deeds', we are not inclined to interfere with

the impugned order on the ground that those assignments are not

enclosed in Form-1.

9. In absence of any merit, the appeal is dismissed. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice A.I.S. Cheema) Member(Judicial) Ar/g

Company Appeal (AT) (Insolvency) No. 312 of 2019