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2017 (11) TMI 1945 - AT - Insolvency and BankruptcyTransfer of the proceedings from the Hon'ble High Court to the Adjudicating Authority - notice for such transfer issued or not - HELD THAT? - Admittedly, no notice was issued under sub-section (1) of Section 8 of the 'I B Code'. In terms with Rule 5, other informations were also not placed before the Adjudicating Authority. The Respondent having failed to provide all the details as required under Form-5 as noticed above, the application under sections 433 and 434 of the Companies Act, 1956 cannot be treated to be an application under section 9 of the 'I B Code' in terms of Rule 5 of Transfer Rules, 2016. In such circumstances, in view of proviso to Rule 5 of the Transfer Rules, the application under Sections 433 and 434 of the Companies Act, 1956 stands abated.
Issues:
Challenge to orders passed by Adjudicating Authority treating application under Insolvency and Bankruptcy Code, 2016 (I & B Code) - Compliance with I & B Code provisions - Existence of alleged debt disputed - Transfer of proceedings from High Court to Adjudicating Authority - Lack of notice to Corporate Debtor - Failure to provide required information for admission of petition - Abatement of application under Companies Act, 1956 - Fresh notice under I & B Code Section 8 - Setting aside orders of Adjudicating Authority - Declaration of application as abated - Setting aside orders of Interim Resolution Professional - Dismissal of Respondent's application - Release of Appellant from legal obligations - Fixing fees of Interim Resolution Professional. Analysis: The Appellant challenged orders passed by the Adjudicating Authority treating the application under the I & B Code, alleging non-compliance with the Code's provisions. The Appellant disputed the existence of the debt claimed by the Respondent, leading to a legal dispute. The case was transferred from the High Court to the Adjudicating Authority, raising issues regarding notice to the Corporate Debtor and procedural fairness. The Appellant argued that the Respondent failed to provide necessary information for the petition's admission, resulting in the abatement of the application under the Companies Act, 1956. The Tribunal found that the Respondent did not fulfill the requirements for admission of the petition under the I & B Code, specifically regarding the lack of notice under Section 8 and the failure to provide essential details. Consequently, the application under the Companies Act, 1956 was deemed abated. The Tribunal set aside the Adjudicating Authority's orders and declared the Respondent's application dismissed. The Appellant was released from legal obligations, and all actions taken by the Interim Resolution Professional were deemed illegal and set aside. The Tribunal granted the Respondent the liberty to issue a fresh notice under Section 8 of the I & B Code, allowing for the possibility of a new application if no dispute arises. The Adjudicating Authority was directed to close the proceedings, and the Appellant was permitted to resume independent operations. The fees of the Interim Resolution Professional, if appointed, were to be fixed by the Adjudicating Authority, with the Appellant responsible for payment. The appeal was allowed with the mentioned observations and directions, without any cost implications.
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