Punjab National Bank vs Kumar Casting Pvt Ltd
- CitationCompany Appeal (AT) (Insolvency) No. 1062 of 2020
Ratio decidendi
The rule this decision rests on
The appeal is dismissed as withdrawn, so the order decides no substantive question, but it does state a principle: under Section 10(4) of the Insolvency and Bankruptcy Code, the Adjudicating Authority is mandated to admit or reject an application made under Section 10 within fourteen days of its receipt, and failure to do so is contrary to that statutory mandate.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Punjab National Bank ...Appellant
Versus
Kumar Casting Pvt. Ltd. ...Respondent
Present: For Appellant: Ms. Divya, Mr. Sanjeev Panda and Mr. Neerajkant Singh, Advocates. For Respondent:
ORDER
(Through Virtual Mode)
15.12.2020: Application of the Corporate Debtor - 'Kumar Casting Pvt. Ltd.' filed
under Section 10 of the I&B Code is said to be still pending consideration before
the Adjudicating Authority (National Company Law Tribunal), Allahabad Bench.
This is against the mandate of Sub-Section (4) of Section 10 of the I&B Code which
enjoins upon the Adjudicating Authority to admit or reject the application on merit
within a period of 14 days of the receipt of the application.
2. Viewed in this context, learned counsel for the Appellant, Ms. Divya Jagga,
Advocate sought to withdraw the appeal preferred against order dated 6th
November, 2020 by virtue whereof the interim direction of status quo has been
extended till final hearing of the insolvency petition. The appeal is accordingly
dismissed as withdrawn.
Cont'd..../ -2-
3. The Adjudicating Authority is requested to expedite consideration of
admission or rejection of the application under Section 10 of the I&B Code keeping
in view the mandate of Section 10(4) and prepone the matter stated to have been
fixed for 9th March, 2021. It is expected that the Adjudicating Authority will
address the issue on priority and pass order of admission or rejection of
application under Section 10 of the I&B Code on merit expeditiously, preferably
within two weeks.
4. A copy of this order be communicated to the Adjudicating Authority.
[Justice Bansi Lal Bhat] Acting Chairperson
[Justice Anant Bijay Singh] Member (Judicial) am/gc
Company Appeal (AT) (Insolvency) No. 1062 of 2020
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