State Of Rajasthan Through Officer In ... vs Arunava Sikdar

State of Rajasthan, ...Appellant Through Officer In Charge Panchu Ram Sharma, Joint Director

Versus

Arunava Sikdar ...Respondents Resolution Professional Jaipur Metals and Electricals Ltd. & Ors.

Present: For Appellant: Dr. Abhishek Manu Singhvi, Sr. Advocate with Mr. Major R.P. Singh, Sr. Advocate with Mr. Rajat Sharma, Mr. Hemans Kothari, Mr. Prakul Khurana, Mr. Ankit Sareen, Advocates. For Respondent: Mr. Abhijeet Sinha, Ashu Kansal, Advocates for R-1. Mr. Ramjit Srinivasan, Sr. Advocate with Mr.Karan Batura, Mr. Nakul Mohta, Advocates for R-2

ORDER

(Virtual Mode)

25.02.2022: Heard Dr. Abhishek Manu Singhvi, Sr. Advocate for the

Appellant. Mr. Ramji Srinivasan, Sr. Advocate for the Respondent No. 2 and

Mr. Abhijeet Sinha, Advocate for Respondent No. 1. With the consent of the

parties, we dispose of this Appeal at the admission stage.

2. Learned Counsel for the Appellant submits that the Appellant has filed

I.A. No. 301/JPR/2019, I.A. No. 327/JPR/2019, I.A. No. 328/JPR/2019 and

I.A. 47 of 2020 before the Adjudicating Authority (National Company Law

Tribunal, Jaipur) the arguments were heard and reserved in January and

February but the matter were released in July, 2021 and the Applications are

still pending. He submits that the Committee of Creditors (CoC in short)

meeting was convened on 18th February, 2022 and with regard to that an

Application i.e. I.A. No. 87/JPR/2022 was filed before the NCLT, Jaipur for 2

passing an Interim Order staying the holding of the CoC meeting which was

rejected by the Impugned Order dated 17th February, 2022. He submits that

thereafter the Appellant filed a petition before the Hon'ble High Court of

Rajasthan and Hon'ble High Court passed an Order staying the convening of

the meeting for one week and given opportunity to the Appellant to file an

Appeal and approach this Tribunal. It is submitted by Learned Counsel for the

Appellant that CoC meeting is not held for last 18 months and the Applications

which has been filed by the Appellant are relevant for CoC constitution and

the applications be heard and CoC may not be taken place.

3. Learned Sr. Counsel for the Respondent-Mr. Ramji Srinivasan submits

that the Applications have been listed on 03.03.2022 and 04.03.2022 and the

applications are going to be heard in March itself. He further submits that

proceeding of CoC may be allowed to be continued and should not be interfered

because the matter is pending for last several years.

4. Learned Counsel for the Respondent No. 1 also submits that

proceedings may be allowed to go on.

5. We observe that till the Applications of the Appellants mentioned above

are disposed of, the Resolution Professional shall not convene any fresh

meeting of the CoC. However, the Resolution Professional may take further

steps after the applications are disposed of, as the Applications are said to be

listed on 03.03.2022 and 04.03.2022. We make it clear that when the NCLT

passes an Order in the applications the appropriate steps be taken including

convening of meeting of the CoC by the Resolution Professional.

6. The Application filed by the Appellant being pending for consideration

before Ld. NCLT which although had heard earlier but could not be decided

Company Appeal (AT) Ins. No. 202 of 2022 3

and matters were released and now they have been listed again on 3rd March

and 4th March, 2022. Having the Applications entertained and kept pending,

it is appropriate that all parties should await the orders which may be passed

in the applications, before taking any further steps in the matter.

7. We are also conscious of the fact that in the Insolvency Proceedings, the

timeline is a factor ad there are already long delay in completion of the

proceeding. Hence, we are of the view that the applications which are fixed for

3rd and 4th March, 2022, may be considered either on the fixed date or as early

as possible preferably within a period of three months thereafter.

8. We are of the view that till the applications are decided by the NCLT,

Resolution Professional shall not take any further steps for convening the

meeting and further steps shall be taken only after the Applications are

disposed of and as per the orders passed by the Ld. Adjudicating Authority in

the aforesaid applications. We make it clear that this order is being passed

only looking to the special facts of the present case. We also make it clear that

we are not expressing any opinion in the merits of the case. It is for the NCLT

to consider and take appropriate decision.

[Justice Ashok Bhushan] Chairperson

[Dr. Alok Srivastava] Member (Technical)

Basant/nn

Company Appeal (AT) Ins. No. 202 of 2022