Srei Infrastructure Finance Ltd vs Idbi Bank Ltd. & Anr

Srei Infrastructure Finance Ltd. ...Appellant

Versus

IDBI Bank Ltd. & Anr. ...Respondents

Present:

For Appellant : Mr. Abhijeet Sinha, Mr. Diwakar Maheshwari and Mr. Shreyas Edupuganti, Advocates

For 1st Respondent: Mr. Arun Kathpalia, Senior Advocate assisted by Mr. Shantanu Chaturvedi and Ms. Charu Bansal, Advocates

For 2nd Respondent : Mrs. Aarti Goyal Agarwal, Advocate

ORDER

11.02.2019 This appeal has been preferred by 'SREI Infrastructure

Finance Limited' ('Financial Creditor') against the order dated 16th January, 2019

wherein the Adjudicating Authority (National Company Law Tribunal), Kolkata

Bench, Kolkata while noticed that the pleadings was completed and also noticed

an order of this Appellate Tribunal dated 15th January, 2019 whereby the

Adjudicating Authority was directed to decide the application under Section 7

of the Insolvency and Bankruptcy Code, 2016 (for short, 'I&B Code') in one or

other way after notice to the concerned parties without hearing the Intervenor at

the stage of admission. Learned counsel appearing on behalf of the appellant

while submits that there are various grounds which were not brought to the -2-

notice of the Adjudicating Authority and the resolution plan of the 'Corporate

Debtor' in question is also the subject matter of the resolution plan in the case

of 'corporate insolvency resolution process' is against the 'Essar Steel India

Limited' (ESIL), accepts that earlier we have directed the Adjudicating Authority

not to hear any person at the stage of admission.

2. Mr. Arun Kathpalia, learned Senior Counsel appearing on behalf of 'IDBI

Bank' (Financial Creditor) who had filed the application under Section 7 referred

to the order dated 15th January, 2019 to suggest that he has no right to move

this appeal. We are also of the view that this is not the stage for any party to

intervene including the appellant. It is for the Adjudicating Authority to pass

the order either admitting the application under Section 7 or rejecting the same

and only thereafter the cause of action arises for one or other party including the

appellant herein, if the appellant feels aggrieved against such order.

3. In the circumstances, we are not inclined to interfere with the impugned

order but we allow the appellant to file three pages written submissions before

the Adjudicating Authority bringing certain relevant facts to its notice after

serving a copy of the same to the learned counsel for the 'Financial Creditor' and

the 'Corporate Debtor'. The Adjudicating Authority may take into consideration,

if it is relevant for the purpose of entertaining the application under Section 7 of

the I&B Code.

4. We make it clear that the Hon'ble Supreme Court in 'M/s. Innoventive

Industries Ltd. vs. ICICI Bank Ltd. - (2018) 1 SCC 407' has already given -3-

guidelines for admission of an application under Section 7, relevant portion of

which has already been quoted in the order dated 15th January, 2019.

5. The appeal stands disposed of with aforesaid observations. No cost.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice Bansi Lal Bhat ] Member (Judicial)

/ns/uk/

Company Appeal (AT) (Insolvency) No. 126 of 2019