Sks Enterprises vs Madhya Bharat Papers Limited

SKS Enterprises ...Appellant

Versus

Madhya Bharat Paper Ltd. ...Respondent

Present:

For Appellant: Mr. Jaianant Dehadrap, Mr. Sidharth Arora, Mr. Udipto Koushik Sarmah, Advocates For Respondent:

ORDER

02.09.2022: Heard Learned Counsel for the Appellant.

2. This Appeal has been filed against the Order dated 16th June, 2022. By

which Order, the Adjudicating Authority (National Company Law Tribunal,

Cuttack Bench, Cuttack) has rejected the I.A. (IB) No. 77/CB/2022 filed in

CP(IB) No. 63/CB/2021. The Applicant has filed Section 9 Application against

the Corporate Debtor on 10.04.2021, subsequently the Application I.A. (IB)

No. 77/CB/2022 was filed in March, 2022 which has been dismissed by the

Impugned Order.

3. By the Application, Applicant sought a restraint order on the Corporate

Debtor from selling his plant and machinery. The Adjudicating Authority has

considered the Application and noted in the Order that Corporate Debtor has

passed a Resolution on 22nd December, 2021 to sell unused, scraped, -2-

outdated, obsolete plants and machineries of the Corporate Debtor which

Resolution was approved, relying on the said Resolution, the Adjudicating

Authority rejected the Application I.A.(IB) No. 77/CB/2022.

4. Learned Counsel for the Appellant contends that Section 9 Application

is pending consideration for long time and in event the Corporate Debtor is

allowed to sell everything, the Appellant may not receive his dues since he has

filed Section 9 Application for default committed by the Corporate Debtor.

5. Considering the submissions of Learned Counsel for the Appellant, we

are of the view that no grounds have been made out to interfere with the Order

impugned. The Adjudicating Authority relied on the Resolution dated 22nd

December, 2021 of the Board of Directors in refusing to pass any restraint

order. We are of the view that Section 9 Application which is pending, may be

heard and decided by the Adjudicating Authority at an early date. We further

grant liberty to Appellant to file any other Application for Interim Relief in event

the Corporate Debtor proceed to sell immovable property.

6. Subject to above, this Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Justice M. Satyanarayana Murthy] Member (Judicial)

[Mr. Barun Mitra] Member (Technical)

Basant/nn

Company Appeal (AT) (Insolvency) No. 1042/2022