Sheena Adarsh vs Union Bank Of India & Anr

Union Bank of India & Anr. ...Respondents

With Company Appeal (AT) (Insolvency) No.742 of 2018

IN THE MATTER OF:

Mr. Sheeju Purushothaman ...Appellant

Versus

Union Bank of India & Anr. ...Respondents

For Appellant : Mr. Baalaji, Mr. Teack Raj, Mr. Karuppaiah Meyyappan Advocates

For Respondent : Mr. Avrojyoti Chatterjee, Mr. Rajiv S. Joy, Mr. Abhijit Roy and Ms. Jayasree Sama Advocates for Respondent No. 1

ORDER

29.03.2019 These appeals have been preferred by the Appellants -

Shareholders against the order dated 1st November, 2018 passed by the

Adjudicating Authority (National Company Law Tribunal) Chennai Bench,

Chennai admitting the application under Section 7 of the Insolvency and

Bankruptcy Code, 2016 ("I&B Code" for short) filed by the Respondent -

'Union Bank of India'- ('Financial Creditor'). 2

2. Learned counsel for the Appellants submitted that the 'Corporate

Debtor' is a Public Limited Company and there are about 24000 shareholders

apart from the employees about 2000 families are dependent on the 'Corporate

Debtor'. It is also submitted that the Adjudicating Authority admitted the

application without notice to the 'Corporate Debtor'.

3. However, the aforesaid submissions cannot be accepted as admittedly

notice was issued to the 'Corporate Debtor' and the Senior Advocate along

with another Advocate appeared on behalf of the 'Corporate Debtor' and they

were heard.

4. Learned counsel for the Respondents submits that the counsel for the

'Corporate Debtor' appeared on eleven occasions before the Adjudicating

Authority thereafter on hearing them the order was passed.

5. So far as the claims of the 'Operational Creditors' are concerned, their

claim will be considered by the 'Resolution Professional' once admitted.

Otherwise, they have no right to be heard at the time of admission of the

application under Section 7 of the 'I&B Code'.

6. For the reasons aforesaid, we are not inclined to interfere with the

impugned order dated 1st November, 2018. The Adjudicating Authority is

expected to complete the 'Resolution Process' in accordance with law within

the stipulated period. The 'Resolution Professional', the 'Committee of

Creditors' will co-operate to ensure that the resolution process succeeds.

Company Appeal (AT) (Insolvency) No. 690 & 742 of 2018 3

Both the appeals stand disposed of with aforesaid observations and

directions. No cost.

[Justice S.J. Mukhopadhaya] Chairperson

[Justice A.I.S. Cheema] Member (Judicial)

/ns/sk/

Company Appeal (AT) (Insolvency) No. 690 & 742 of 2018