Sanjay Gupta, Resolution ... vs Committee Of Creditor, Topworth Pipes & ...
- CitationCompany Appeal(AT) (Insolvency) No. 1098 of 2019
Ratio decidendi
The rule this decision rests on
The Tribunal declined to interfere with the impugned order because the corporate insolvency resolution process had run beyond the statutory outer limit of 330 days from admission, and no resolution plan was available for approval; in such circumstances, with the 330-day limit under Section 12 having expired, the process cannot be continued and the matter must proceed towards liquidation under Section 33(1), so that the Resolution Professional is directed to convene a meeting of the Committee of Creditors to take the steps necessary to seek a liquidation order from the Adjudicating Authority.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI Company Appeal(AT) (Insolvency) No. 1098 of 2019 IN THE MATTER OF: Mr. Sanjay Gupta, R.P. of Topworth Pipes & Tubes Pvt. ...Appellant Ltd. Vs Committee of Creditor, Topworth Pipes & Tubes Pvt. ....Respondent Ltd. Present: For Appellant: Mr. Abhishek Anand and Ms. Honey Satpal, Advocates for RP
For Respondent: Mr. Sanjay Kapur and Mr. V.M. Kannan, Advocates
ORDER
03.02.2020 Heard learned Counsel for the Appellant-Resolution
Professional and Advocate for the Committee of Creditors (in short 'CoC').
Perused various orders passed by this Tribunal in this Appeal. This Appeal was
basically filed for exclusion of 89 days from the period of 270 days. As it was
stated to this Tribunal that there is hope of Resolution Plan being passed, this
Tribunal by order dated 21.10.2019 directed the Adjudicating Authority not to
pass order of liquidation and permitted the CoC to continue with process of
consideration of Resolution Plans received but decision taken was to be subject
to the decision of this Appeal. Subsequently, in spite of opportunities given, it
appears that till now there is no Resolution Plan which could be approved or
available for consideration of CoC. The Plans received earlier are said to have
been rejected.
The Application under Section 7 of Insolvency and Bankruptcy Code, 2016
(in short 'IBC') in the present matter was admitted on 11.12.2018. Apparently
now even more than 330 days have passed even if we look at amended Section
Company Appeal(AT)(Insolvency) No. 1098 of 2019 Page 1 of 2 12 of IBC. In the circumstances, we do not interfere with the Impugned order.
Keeping in view Section 33(1) of IBC, we dispose of the present Appeal with a
direction to the Appellant-RP to urgently call meeting of CoC so that further steps
to seek order for liquidation from the Adjudicating Authority could be taken.
Appellant will then move Adjudicating Authority so that further orders could be
taken keeping in view Section 33(1) of IBC. Needful be done in two weeks.
Appeal is disposed accordingly.
[Justice A.I.S. Cheema] Member (Judicial)
[Justice Anant Bijay Singh] Member (Judicial)
(Kanthi Narahari) Member(Technical) Akc/Md
Company Appeal(AT)(Insolvency) No. 1098 of 2019 Page 2 of 2
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