Union Of India vs Shri Lakshmi Cotyn Ltd. Through ...
- CitationCompany Appeal (AT) (Ins) No. 374 of 2020
Ratio decidendi
The rule this decision rests on
The Tribunal's reasoning rests on the following: where an application for liquidation under the Insolvency and Bankruptcy Code, 2016 has remained pending for an extended period owing to the successive filing of miscellaneous applications, such conduct by the parties cannot be permitted to obstruct the insolvency resolution process, and the adjudicating authority should be requested to dispose of the liquidation application at the earliest, endeavouring to pass appropriate orders within a short fixed period, having regard to the object of the statute and the protection of all stakeholders' interests.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Union of India .......Appellant
Vs
Shri Lakshmi Cotyn Ltd.
Through Resolution Professional .......Respondent
Present:
For Appellant:- Mr. Krishnadu Datta, Ms. Ranjana Roy, Mr. Pervindar and Mr. Vineet Kumar, Advocates
For Respondent :-Ms. Vatsala Kak, Advocate for RP.
ORDER
03.03.2020- Mr. Data, Advocate representing the Appellant (Financial
Creditor) who is stated to be a leading member of the 'Committee of
Creditors' submits that the Liquidation Application has been pending for
past more than a year now, and the same has not been decided. This fact is
also borne out by the Impugned Order dated 10th February, 2020. Even
Learned Counsel representing the Resolution Professional and Ms. Vatsala
Kak. Advocate, representing the Respondent admitted that Liquidation
Application has been pending since long.
2. We have noticed that on the pretext of one or other Miscellaneous
Application being filed, the disposal of Liquidation Application has been
delayed. Such conduct on the part of different characters cannot be
permitted to thwart the course of Insolvency Resolution Proceedings under
I&B Code. Having regard to the object of the statute and to protect the
interests of all stakeholders, we request the Learned Adjudicating Authority to take up the Liquidation Application for disposal at the earliest and make
all possible endeavours to pass appropriate orders thereon within 10 days.
The Appeal is accordingly disposed off.
3. This order may be communicated to Learned Adjudicating Authority
forthwith.
(Justice Bansi Lal Bhat) Member (Judicial)
(ShreeshaMerla) Member (Technical)
SC/NN
Company Appeal (AT) (Ins) No. 374 of 2020
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