Sidhartha Global Private Limited vs M/S Amira Pure Foods Pvt Ltd
- CitationCompany Appeal (AT) (Ins.) No. 585 of 2022
Ratio decidendi
The rule this decision rests on
When an application is taken up on merits by the Adjudicating Authority, it must be decided on merits by considering the claim and the material on record; a bare dismissal reciting that "in the given facts and circumstances the prayers cannot be acceded to", without any reasoning engaging with the claim, cannot be sustained and is liable to be set aside.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Sidhartha Global Pvt. Ltd. ....Appellant
Vs.
Amira Pure Foods Pvt. Ltd. ....Respondent
Present: For Appellant: Mr. Shiv Mangal Sharma, Mr. Saurabh Rajpal, Mr. Abhishek Sharma, Advocates For Respondent: Ms. Swaralipi Deb Roy, Mr. R. K. Gupta, Advocates
ORDER
10.07.2023: Heard Learned Counsel for the Appellant. The delay in filing
the appeal is condoned.
This appeal has been filed against the order passed by the Adjudicating
dated 06.10.2021 by which order CA No. 906/2019 filed by the Appellant has
been dismissed.
3. The Adjudicating Authority noticed that no one appears to press the
application and the subject premises was handed over to the Applicant on
17.11.2020. It was also observed by the Adjudicating Authority that the
agreement was terminated prior to commencement of CIRP. Adjudicating
Authority observed that Adjudicating Authority has gone through the prayers
and in the given facts, the prayers cannot be acceded to and the application is
dismissed.
4. Learned Counsel for the Appellant challenging the order submits that it is
true that the Counsel for the Applicant was not present before the Adjudicating
Authority but the rejection of the application was not required. It is submitted
that when it is admitted that premises have been handed over to the Applicant
on 17.11.2020 and CIRP commenced on 11.12.2018, the Appellant was entitled
for its rent.
Company Appeal (AT) (Ins.) No. 585 of 2022 1
5. Learned Counsel for the Appellant further submits that the liquidator has
admitted the claim of the Appellant to the extent of Rs. 1,06,59,332/- in wake of
admission of part claim, rejection of application was not required.
6. Learned Counsel appearing for the liquidator submits that the Applicant
was not entitled to the relief as prayed in the application.
7. We have considered the submission of the Learned Counsel for the parties
and peruse the record.
8. The prayers which were made in the application filed by the Appellant are
to the following effect: -
"(a) Direct the Resolution
Profession of the Corporate Debtor to
immediately pay monthly damages /
compensation / Occupation charges of Rupees
24,63,237 - (Rupees Twenty Four Lakhs Sixty
Three Thousand Two Hundred and Thirty Seven
only) in terms of clause 29(f) of the least Lease
Deed, from the date of commencement of
Insolvency Resolution Process i.e. 11.12.2018 till
July, 2019, total of which comes to Rupees
1,97,05,896/- (Rupees One Crore Ninety Seven
Lacs Five Thousand Eight Hundred and Ninety
Six only) and further till the completion of entire
Corporate Insolvency Resolution Process @
Rupees 24,63,237/- (Rupees Twenty Four Lakhs
Sixty Three Thousand Two Hundred and Thirty
Seven only) per month; and/or
(b) Include the aforesaid sum in the
Insolvency Resolution Process Costs in terms of
Rule 31(b) of the Insolvency and Bankruptcy
Company Appeal (AT) (Ins.) No. 585 of 2022 2 Board of India (Insolvency Resolution Process for
Corporate Persons) Regulations, 2016.
(c) pass such other order/directions as
this Hon'ble Bench may deem fit and proper in
the facts and circumstances of the case."
9. Learned Counsel for the Appellant has also pointed out to the letter of the
liquidator by which liquidator has communicated on 14.05.2020 that the
liquidator has admitted the claim to the extent of Rs. 1,06,59,332/-. The
Adjudicating Authority's only observations made while rejecting the application-
'we have gone through the prayers, in the given facts and circumstances
of the case the prayers cannot be acceded to and, therefore, the application is
dismissed."
10. We are of the view that when the Adjudicating Authority proceeded to
decide the application on merits, the application ought to have been considered
on merits considering the claim of the Appellant and other materials on record.
Rejection of the application by the above observations cannot be sustained.
11. The orders passed by the Adjudicating Authority dated 06.10.2021
deserves to be set aside and CA No. 906/2019 is revived before the Adjudicating
Authority to be considered afresh. We make it clear that we are not making any
observations on merits of the application and it is for the Adjudicating Authority
to consider the application afresh and pass appropriate orders. The appeal is
disposed of accordingly.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical)
ss/nn Company Appeal (AT) (Ins.) No. 585 of 2022 3
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