Vighnahartha Corrugators Private ... vs Hemant Sharma And Ors
- CitationCompany Appeal (AT) (Insolvency) No.135 of 2024
Ratio decidendi
The rule this decision rests on
The Tribunal's reasoning rests on the following: where a direction imposing a monetary penalty on members of a Committee of Creditors for non-appearance is challenged, and the members have given an undertaking to appear virtually on the next date, the penalty may be deleted, since the penalty was imposed on the footing of non-compliance with the direction to appear in person, and the subsequent undertaking to appear virtually on the next date addresses that default and renders the penalty unwarranted in the circumstances.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Vignaharta Corrugators Pvt. Ltd. ...Appellant
Versus
Hemant Sharma & Ors. ...Respondents
Present: For Appellant: Mr. Prateek Gupta, Advocate. For Respondents: Ms. Udita Singh, Advocate for RP. Mr. Vaibhav Tyagi, Advocate for R-10 to 13. Mr. Lokesh Malik, Advocate for R-14 to 18.
ORDER
(Hybrid Mode)
19.01.2024: Heard learned counsel for the Appellant as well as learned
counsel for the Resolution Professional. Learned counsel for the Appellant
submits that other respondents are members of the CoC who are only
Proforma Respondents. With the consent of the parties, we have heard the
appeal finally.
2. This appeal has been filed against the order dated 07.12.2022, which
order has been passed in I.A. No.120 of 2021. The Adjudicating Authority by
the said order directed the members of the CoC to deposit Rs.20,000/- each
in the Prime Minister National Relief Fund. Reason for such direction is that
the Adjudicating Authority has directed the members of the CoC to appear in
person by order dated 24.11.2023, on the next date except counsel for one
member of CoC, no other CoC members appeared. Hence, the Adjudicating
Authority directed for payment of penalty.
Cont'd.../ -2-
3. Learned counsel for the Appellant submits that the other members of
the CoC were present virtually and there was no intent of disobedience of order
of the Court and there was no occasion for imposing penalty of Rs.20,000/-.
Learned counsel for the parties further submitted that now next date has been
fixed in the matter is 22.01.2024.
4. Learned counsel for the Appellant as well as other learned counsel
appearing for Respondents who are members of CoC have undertaken that on
next dated i.e. 22.01.2024 all the members shall appear through counsels
virtually. It is also submitted that the member of the CoC shall also be
virtually present in addition to their counsels.
5. In view of the aforesaid undertaking, we are of the view that direction
for imposition of penalty of Rs.20,000/- deserve to be deleted and is hereby
deleted. Let all the members of the CoC appear virtually before the
Adjudicating Authority on the next date i.e. 22.01.2024, as undertaken.
Appeal is disposed of accordingly.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Arun Baroka] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No.135 of 2024
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