Vinay Bhadauria vs Sajjan Kumar Dokania And Ors

National Company Law Appellate Tribunal19 July 2023Ashok Bhushan

CitationCompany Appeal (AT) (Insolvency) No. 616 of 2023

Ratio decidendi

The rule this decision rests on

The Adjudicating Authority's finding that a Section 7 application was within limitation, on the basis that the period was extended by the Supreme Court's order in Suo Moto Writ Petition No. 03 of 2020, is not separately reasoned here; the Tribunal records only that no error is found in admitting the application on the existence of debt and default. Where a Section 7 application is admitted on the ground of debt and default, the Tribunal will not interfere in appeal if the Adjudicating Authority has found that debt and default exist; the appellant's stated willingness to settle is not a ground to set aside admission, and a corporate debtor wishing to settle must instead invoke Section 12A and place any settlement proposal before the Committee of Creditors for consideration by the requisite majority.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHICompany Appeal (AT) (Insolvency) No. 616 of 2023&I.A. No. 1811 of 2023IN THE MATTER OF:

Vinay Bhadauria ...Appellant

Versus

Sajjan Kumar Dokania ...Respondents Resolution Professional IBD Universal Pvt. Ltd. & Ors.

Present: For Appellant: Mr. Rakesh Kumar, Ms. Preeti Kashyap, Ankit Sharma, Harsh Vardhan Gupta, Varun Pandi, Rishabh Arora, Advocates For Respondent: Mr. Vinod Kr. Chaurasia, Mr. Shivam Pal, Advocates for R-2

ORDER

19.07.2023: This Appeal has been filed against the Order dated 30th

January, 2023 by which Section 7 Application filed by the Financial Creditor

has been admitted.

2. The Corporate Debtor before the Adjudicating Authority has raised the

issue of limitation that Application is barred by time. The Adjudicating

Authority has considered the said submission and held that time for starting

limitation was on 12th July, 2017 and in view of the order passed by the

Hon'ble Supreme Court in Suo Moto Writ Petition No. 03 of 2020 Section 7

Application filed on 08.05.2022 was within the limitation provided.

3. Learned Counsel for the Appellant challenging the Order submits that

Corporate Debtor is carrying several projects which is real estate company and -2-

Appellant intend to settle the matter with the Bank and submit some

settlement scheme with respect to development of project.

4. We are of the view that in so far as admission of Section 7 Application

there being debt and default, no error can be found in the order of the

Adjudicating Authority admitting Section 7 Application. So far as the

submission of the Appellant that Appellant is ready to enter into Settlement,

it shall be open for the Appellant to seek route of Section 12A of the Code and

settlement proposal, if any, may be placed before the Committee of Creditors

for consideration and after requisite majority votes, application may be

considered.

With these observations, the Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Mr. Barun Mitra] Member (Technical)

Basant/nn

Company Appeal (AT) (Insolvency) No. 616/2023

This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.

Research this judgment with Miss Lucy

Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.

Try Miss Lucy free