Sabyasachi Sahoo vs Imperial Refractories & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 562 of 2022
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority's finding that the operational debt was proved, and its consequent order admitting a Section 9 application, is not shown to be erroneous; an appellate order dismissing the appeal on that basis rests on the proposition that an admission order grounded in a finding of proved operational debt will not be disturbed absent an identified error in that finding. Where an appeal against admission under Section 9 is pending and settlement is being sought, the Appellate Tribunal may direct the Interim Resolution Professional to proceed with collating claims while withholding constitution of the Committee of Creditors, and may grant the appellant liberty to apply under Section 12A within a fixed period, with the Committee of Creditors to be constituted if no settlement is reached within that period.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Sabyasachi Sahoo, Suspended Director of Shrikrupalu ...Appellant Steels Pvt. Ltd.
Versus
Imperial Refractories & Anr. ...Respondents
Present:
For Appellant: Mr. Anjuman Tripathy, Ms. Sreenita Ghosh Thakker, Ms. S. Gupta, Advocates For Respondent: Mr. Ashish Choudhury, Mr. Anand Kamal, Advocates for R1. Mr. Kunal Godhwani, Advocate for R2,IRP.
ORDER
02.09.2022: Heard Learned Counsel for the parties.
2. This Appeal has been filed against the Order passed by the Adjudicating
Authority on 02nd May, 2022. By which Order, Application under Section 9
filed by the Respondent-Operational Creditor has been admitted. The
Appellant is suspended director of the Corporate Debtor.
3. In this Appeal, on 19th May, 2022, the Appellant submitted that the
Appellant is ready to settle the matter with the Respondent and adjournment
was sought. Further on two occasions, the matter was adjourned awaiting any
Settlement. Learned Counsel for the Respondent submits that he has
instructions that no negotiations regarding the Settlement are under way. -2-
4. Learned Counsel for the Appellant submits that a further 15 days' time
may be allowed and in event the Settlement does not take place, CIRP may
proceed, thereafter.
5. We have perused the Order impugned passed by the Adjudicating
Authority. The finding has been recorded by the Adjudicating Authority that
Operational Debt is proved hence the Order of Admission was passed. We do
not find any error in the Order admitting Section 9 Application. We have by
our Order dated 19th May, 2022 directed the IRP to proceed with collating the
claims but shall not constitute the Committee of Creditors.
6. We dismiss this Appeal. Consequently, IRP shall proceed in accordance
with the Impugned Order. We further grant liberty to the Appellant to file an
Application under Section 12-A of the IBC, 2016 within 15 days from today, if
no settlement takes place after 15 days, IRP shall be entitled to constitute the
Committee of Creditors.
The Appeal is dismissed, subject to above.
[Justice Ashok Bhushan] Chairperson
[Justice M. Satyanarayana Murthy] Member (Judicial)
[Mr. Barun Mitra] Member (Technical)
Basant/nn
Company Appeal (AT) (Insolvency) No. 562/2022
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