R.G.G. Vyapaar Pvt. Ltd vs Arun Kumar Gupta & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 509 of 2018
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority has no jurisdiction under Section 31 of the Insolvency and Bankruptcy Code, 2016 to reopen a corporate insolvency resolution process after it has approved a resolution plan, so an application seeking to challenge the rejection of a creditor's claim by the Resolution Professional, made after such approval, cannot be entertained. Relief in the nature of reopening the resolution process cannot be granted where the approved resolution plan has not been challenged.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
R.G.G. Vyapaar Pvt. Ltd. ...Appellant
Vs
Arun Kumar Gupta & Anr. ....Respondents
Present:
For Appellant: Mr. Jishnu Chowdhury, Mr. Sidhartha Sharma, Mr. Arjun Asthana and Ms. Sreenita Ghosh, Advocates. For Respondents:
ORDER
31.08.2018: The Appellant, who claim to be a Financial Creditor, filed an
application before the Adjudicating Authority (National Company Law Tribunal),
Kolkata Bench, Kolkata alleging that his claim has been rejected by the
Resolution Professional of 'M/s Divya Jyoti Sponge Iron Pvt. Ltd.', which was
ongoing Corporate Insolvency Resolution Process. The Adjudicating Authority
by impugned order dated 11th July, 2018 rejected the same taking into
consideration the fact that before filing the application by the Appellant the
Resolution Plan has already approved by the Adjudicating Authority under
Section 31 of the I&B Code.
2. Having heard learned counsel for the Appellant as we are of the opinion
that the Adjudicating Authority has no jurisdiction to reopen resolution process -2-
under Section 31 of I&B Code, the said Authority rightly rejected the application.
No relief can be granted in absence of any challenge to the approved resolution
plan. We find no merit in this appeal, it is accordingly dismissed. No cost.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial) am/uk
Company Appeal (AT) (Insolvency) No. 509 of 2018
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