2019 (1) TMI 1743 - AT - Insolvency and Bankruptcy

Adjournment of the case twice - the Committee of Creditors passed order in terms of sub-section (4) of Section 30 of the Insolvency and Bankruptcy Code, 2016 and the Resolution Professional placed the matter before the Adjudicating Authority (National Company Law Tribunal) on 26th October, 2018 for passing order in terms of Section 31 of the I B Code - HELD THAT - It is not clear as to why after the decision of the Hon ble Supreme Court and the approval of the Committee of Creditors and placement of the Resolution Plan , the Adjudicating Authority, Ahmedabad Bench, has adjourned the twice. It is informed that the matter is likely to be listed on 7th January, 2019, therefore, we are not making any observation with regard to nondisposal of the matter on an early date in spite of the Judgement of the Hon ble Supreme Court - Appeal disposed off.

Summary

Issues:
1. Delay in passing order by the Adjudicating Authority despite the decision of the Hon'ble Supreme Court.
2. Adherence to the provisions of the Insolvency and Bankruptcy Code, 2016.

Analysis:
1. The judgment addresses the issue of delay in passing the order by the Adjudicating Authority despite the decision of the Hon'ble Supreme Court in a specific case. It notes that the Committee of Creditors had already passed an order in accordance with the provisions of sub-section (4) of Section 30 of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional had also submitted the matter for the Adjudicating Authority's consideration under Section 31 of the I&B Code. However, the Adjudicating Authority, Ahmedabad Bench, adjourned the matter twice, which raised concerns about the delay in the final decision.

2. The judgment emphasizes the importance of the Adjudicating Authority's prompt action in line with the provisions of the I&B Code. It highlights that despite the matter being likely to be listed for a hearing, no observation was made regarding the delay in disposal due to the upcoming listing date. The Appellate Tribunal expresses hope that the Adjudicating Authority will issue a final order promptly, considering the Supreme Court's decision in a previous case involving similar circumstances. It asserts that if the Adjudicating Authority fails to adhere to the law and delays the decision further, the Appellant has the right to bring this matter to the attention of the Appellate Tribunal for appropriate action.

3. In conclusion, the judgment disposes of the appeal without imposing any costs. It serves as a reminder to the Adjudicating Authority to act promptly and in accordance with the legal provisions of the Insolvency and Bankruptcy Code, 2016, ensuring timely resolution of matters following Supreme Court decisions and Committee of Creditors' orders.