2020 (9) TMI 1167 - AT - Insolvency and Bankruptcy

Maintainability of application - application filed by Respondent No. 3 in collusion with Respondent No. 1 and 2 to frustrate the awards including the latest award dated 12th July, 2020 passed in favour of the Appellant - HELD THAT - Issue notice upon Respondents. Mr. Rishav Banerjee, Advocate waived and accepted notice on behalf of Respondent No. 1. Mr. Aishwarya Kr. Awasthi, Advocate waived and accepted notice on behalf of Respondent No. 3. No further notice needs to be issued on these Respondents. Respondents may file their reply affidavit within two weeks. Rejoinder, if any, may be filed within two weeks thereof. Notice be served upon Respondent No. 2 only. Appellant to provide mobile Nos./e-mail address of the Respondent No. 2. Notice be issued through e-mail or any other available mode. Requisites along with process fee be filed within three days - List the appeal for admission (after notice) on 4th November, 2020.

Summary

Issues: Application under Section 9, collusion among shareholders, impugned order, notice upon respondents, interim resolution professional, functioning of the company, Committee of Creditors decision.

Analysis:
1. Application under Section 9: The appellant, along with Respondent No. 2, are the only shareholders of the Corporate Debtor. The application under Section 9 is filed by Respondent No. 3 allegedly in collusion with Respondent No. 1 and 2 to frustrate the awards in favor of the Appellant. The appellant argues that the impugned order cannot be sustained due to this collusion.

2. Notice upon Respondents: The Tribunal issues a notice upon the respondents, with Mr. Rishav Banerjee and Mr. Aishwarya Kr. Awasthi accepting notice on behalf of Respondent No. 1 and 3 respectively. Respondents are directed to file their reply affidavits within two weeks, with the provision for rejoinder within two weeks thereafter. Notice is to be served upon Respondent No. 2, and the appellant is required to provide the mobile numbers/email address of Respondent No. 2 for the same.

3. Interim Resolution Professional: The Interim Resolution Professional is tasked with ensuring the company remains a going concern. They are directed to take assistance from the suspended Board of Directors, with the appellant and Corporate Debtor instructed to cooperate. The Interim Resolution Professional is authorized to oversee the signing of bank cheques, with a requirement for counter-signature for payment release. Bank accounts of the Corporate Debtor are allowed to be operated for day-to-day functions like bill payments, salaries, and wages.

4. Functioning of the Company: The order specifies that the Committee of Creditors will not take any decision until the next date of hearing. This ensures that the company's operations continue smoothly under the guidance of the Interim Resolution Professional without interference from the Committee of Creditors.