Vinod Kumar Mittal & Ors vs Modex International Securities ...

Company Appeal (AT) (Insolvency) No. 851 of 2022 IN THE MATTER OF: Vinod Kumar Mittal & Ors. ...Appellants

Versus

Modex International Securities Ltd. ...Respondent Through Interim Resolution Professional

Present: For Appellants : Mr. Shashank S. Mangal, Advocate

For Respondent : Mr. Karan Gandhi, Advocate for R-1.

ORDER

17.10.2022 This appeal has been filed against an order dated 31.05.2022

by which I.A. No. 2478 of 2022 has been rejected. The submission for the

learned Counsel for the Appellant is that in I.A. No. 2478/22 three more prayers

were made and only prayer No. 1 has been considered by the Adjudicating

Authority. The prayers in I.A. No. 2478 of 2022 are as follow:

i. "quash the insolvency proceedings in CP(IB) 174/2019, or

ii. direct the Resolution Professional to treat the Applicants as

Financial Creditors,

iii. refer the matter to the Secretary, Ministry of Corporate

Affairs, Government of India, to get the matter investigated

by Inspector or Inspectors following the procedure in terms

of Section 213 of the companies Act, 2013 in terms of

judgment of the Ld. NCLAT in Lagadapati Ramesh Vs. Ramanathan Bhuvandshwari, Company Appeal

(AT)(Insolvency) No. 574/2019

iv. pass any other order as the Ld. Tribunal may think fit in its

wisdom for securing the interest of justice."

2. Learned Counsel for the Appellant submits that IRP, vide his mail dated

22.03.2022, rejected the claim of the Appellant as Financial Creditor and he

was advised to submit the claim in Form-B which was under challenge in the

aforesaid I.A., but the Adjudicating Authority did not consider.

3. We have heard the learned Counsel for the Respondent who submits that

the Appellant had neither made the Directors of the Corporate Debtor the

parties to the Application nor had even pressed other prayers.

4. After hearing for the parties, we are of the view that the prayer no. ii in

the Application with regard to the claim of the Appellant as Financial Creditor

is required to be considered by the Adjudicating Authority. In so far as prayer

no. iii, we see no reason to issue any direction as prayed for.

5. Thus, we are reviving the Interlocutory Application i.e., I.A. No. 2478 of

2022 only with regard to prayer No. ii i.e., "direct the Resolution Professional to

treat the Applicants as Financial Creditors" The Adjudicating Authority shall

take a decision with regard to claim of the Appellant as Financial Creditor. We

make it clear that we have not made any observation to the merits of the claim

and it is for the Adjudicating Authority to consider and take a decision.

Company Appeal (AT)(Insolvency) No. 851 of 2022 Page 2 of 3

6. We further notice that SEBI has already taken up the proceeding and

several directions have been issued. No direction, as prayed in prayer -iii needs

to be entertained by Adjudicating Authority.

(Justice Ashok Bhushan) Chairperson

(Dr. Alok Srivastava) Member(Technical)

(Mr. Barun Mitra) Member(Technical) akc/Nn

Company Appeal (AT)(Insolvency) No. 851 of 2022 Page 3 of 3