Shipra Hotels Ltd vs Value Line Interiors Pvt. Ltd
- CitationCompany Appeal (AT) (Insolvency) No. 290 of 2018
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal's order rests on the Supreme Court's order of 3 August 2018, which it treats as binding: the Adjudicating Authority's order of 1 June 2018 and the Tribunal's interim order of 26 July 2018 having been set aside, the Tribunal is bound to give effect to that setting aside and modify its own order of 5 June 2018 accordingly, permitting the Appellant to draw the amount from the Escrow Account, with interest if any, to give effect to the settlement reached between the parties. Consequent upon the setting aside of the Adjudicating Authority's order, the orders appointing the Resolution Professional, declaring moratorium and freezing the account, and all orders and actions taken pursuant to them (including the newspaper advertisement inviting applications) fall with it and are declared illegal and set aside. A Section 9 application that has been withdrawn in this manner is dismissed as withdrawn, and the Corporate Debtor is released from the moratorium and allowed to function through its Board of Directors. The Adjudicating Authority is to fix the Resolution Professional's fee, which is payable by the Corporate Debtor along with the costs incurred.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Shipra Hotels Ltd. ...Appellant
Vs
Value Line Interiors Pvt. Ltd. ....Respondent
Present: For Appellant: Mr. Animesh Sinha, Mr. Arbaaz Hussain, Ms. Sonali Jaitley Bakhshi, Mr. Jaiyesh Bakhshi and Mr. Ravi Tyagi, Advocates. For Respondent:
ORDER
10.08.2018: Learned counsel for the Appellant brought to our notice the order passed by the Hon'ble Supreme Court dated 3rd August, 2018 in Civil Appeal No. 7405 of 2018, whereby the Hon'ble Supreme Court has set aside the order dated 01.06.2018 passed by the Adjudicating Authority (National Company Law Tribunal), Allahabad Bench, as also the interim order dated 26.07.2018 which was passed by this Appellate Tribunal.
2. In view of the order of Hon'ble Supreme Court, we allow the Appellant to draw the amount from the Escrow Account with interest, if any, to give effect to settlement reached between the parties. This Appellate Tribunal's order dated 05.06.2018 stands modified to the extent above.
3. In effect, order(s) passed by the Adjudicating Authority appointing 'Resolution Professional', declaring moratorium, freezing of account, and all other order(s) passed by Adjudicating Authority pursuant to impugned order and action taken by the 'Resolution Professional', including the advertisement published in the newspaper calling for applications all such orders and -2-
actions are declared illegal and are set aside. The application preferred by Respondent under Section 9 of the I&B Code, 2016 is dismissed as withdrawn. The 'Corporate Debtor' is released from all the rigour of law and is allowed to function independently through its Board of Directors from immediate effect.
4. The Adjudicating Authority will fix the fee of the 'Resolution Professional', and the 'Corporate Debtor' will pay the fees, and other cost incurred by him.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial) am/gc
Company Appeal (AT) (Insolvency) No. 290 of 2018
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free