Rosoboronsevice (India) Limited vs Respondent
- CitationCompany Appeal (AT) (Insolvency) No. 517 of 2022
Ratio decidendi
The rule this decision rests on
The reasoning here is thin but present: the Tribunal holds that where a corporate debtor has no assets, tangible or intangible, insolvency resolution would serve no purpose on the facts, and on that basis it deletes the Adjudicating Authority's direction to the applicant to pursue voluntary liquidation.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Rosoboronservices (India) Ltd. ...Appellant
Versus
---- ...Respondent
Present: For Appellant: Mr. Aditya Malhotra and Mr. Sumit Khanna, Advocates. For Respondent:
ORDER
(Virtual Mode)
12.05.2022: Heard learned counsel for the Appellant. This Appeal has
been filed against the order dated 07.09.2021 passed by the Adjudicating
Authority (National Company Law Tribunal) Mumbai Bench Court III by which
order the application filed under Section 10 of the I&B Code has been disposed
of. The short order passed by the Adjudicating Authority is as under:-
"ORDER
Counsel for the Applicant, Mr. Sankar Swamy is present through virtual hearing.
CP 3583/2019 The above Company Petition has been filed by Corporate Applicant under section 10 of IBC. The bench briefly heard the counsel.
It seems that there are no assets in the Company both tangible and intangible. In view of this, the bench 2
advices the petitioner to go for voluntary liquidation of the company.
With the above observations and directions the above Company Petition stands disposed of."
2. Learned counsel for the Appellant submits that the Adjudicating
Authority has advised to go for voluntary liquidation whereas under Section
59, the Appellant cannot file voluntary liquidation application since he has
committed default.
3. The Adjudicating Authority has observed in the order that there are no
assets in the Company both tangible and intangible. We are of the view that
there being no assets in the Company both tangible and intangible no purpose
shall be served in insolvency resolution in the facts of the present case. We,
thus, are of the view that the ends of justice be served in disposing of the
Appeal by deleting the following observation of the Adjudicating Authority from
the impugned order:-
"In view of this, the bench advices the petitioner to go for voluntary liquidation of the company."
The Appeal is disposed of with these observations.
[Justice Ashok Bhushan] Chairperson
[Shreesha Merla] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No. 517 of 2022
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