Vijender Sharma vs M/S Singhal Strips Limited & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 986 & 987 of 2021
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority, before admitting an insolvency application under the Insolvency and Bankruptcy Code, is not bound to implead or hear a third party who seeks to intervene in that application merely because the applicant alleges siphoning of the corporate debtor's funds; an applicant's interim applications for impleadment may be dismissed on the ground that the principal application has not yet been admitted, without interfering with the application at that stage, and the applicant remains free to renew the impleadment request if the application is later admitted.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Company Appeal (AT) (Insolvency) No. 986 & 987 of 2021
IN THE MATTER OF:
Vijender Sharma ...Appellant
Versus
Singhal Strips Ltd. & Ors. ...Respondents
Present: For Appellant: Mr. Iswar Mohapatra, Advocate.
For Respondents: Ms. Shruti Karodia, Mr. Rahul Jajoo and Mr. Utkarsh Khandelwal, Advocates for R-2&3.
ORDER
(Virtual Mode)
03.12.2021: Heard Learned Counsel for the Appellant. This Appeal has
been filed against orders dated 30.07.2021 by which I.A. No. 3143/2021 and I.A.
No. 3137/2021 have been dismissed by the Adjudicating Authority (National
Company Law Tribunal), New Delhi, Court-V. These I.As. were filed by the
Appellant, Vijender Sharma, to permit him to be impleaded as necessary party in
IB-3131/ND/2019 and IB-3148/ND/2019. The Applicant in his application has
stated several facts including the allegation that there is siphoning of funds of
the Corporate Debtor. He claims that he is a necessary party and he should be
heard before the application is considered and decided. The Adjudicating
Authority has rejected his I.As. on the ground that the Application is not yet
admitted.
Cont'd...../ -2-
We do not intend to interfere at this stage. We, however, make it clear that
it shall be open for the Appellant to make a fresh application for
impleadment/intervention in the eventuality of the Application is admitted by the
Adjudicating Authority. With these observations, the Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Justice Jarat Kumar Jain] Member (Judicial)
[Dr. Alok Srivastava] Member (Technical) Archana/nn.
Company Appeal (AT) (Insolvency) No. 986 & 987 of 2021
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