Samtex Desinz Pvt Ltd vs Bharat Bhushan

IN THE MATTER OF: M/s. Samtex Desinz Pvt. Ltd. ...Appellant Versus Bharat Bhushan ...Respondent

Present: For Appellant : Mr. Jayant Kumar Mehta and Mr. Aniruddha Deshmukh, Advocates

For Respondents : Mr. Manish Raghav and Mr. Ranjan Doshi, Advocate

ORDER

(Through Virtual Mode)

11.08.2020 After hearing the learned counsel for the parties, we find that

the impugned order has been passed at the pre-admission stage of application

filed by the Respondent (Operational Creditor). The order passed is prohibitory

in nature. Without going into the merits of the order, we are constrained to

observe that the Adjudicating Authority has failed to follow the mandate of

Section 9(5) of the 'I&B Code' as it was supposed to pass order of admission or

rejection in regard to the application under Section 9 within 14 days of its filing.

We also find that the impugned order has been passed after more than three

months of filing the application under Section 9 of the 'I&B Code' and before

imposition of lockdown on account of outbreak of Covid-19. In the given

circumstances, without interfering with the impugned order, we direct the

Adjudicating Authority, New Delhi Bench to pass order in regard to the

admission or rejection of the application under Section 9 filed by the Respondent

(Operational Creditor) on merit within one week. We make it clear that the -2-

direction given in the impugned order will last only till the date such order is

passed by the Adjudicating Authority.

All questions regarding the merits of the case are left open and the parties

shall be at liberty to address the Adjudicating Authority.

The appeal is accordingly disposed of.

Registry is directed to send a copy of this order to the Adjudicating

Authority, New Delhi Bench forthwith.

[ Justice Bansi Lal Bhat ] Acting Chairperson

[ Justice Anant Bijay Singh ] Member (Judicial)

[ Dr. Ashok Kumar Mishra ] Member (Technical)

/ns/gc/

Company Appeal (AT) (Insolvency) No. 676 of 2020