2021 (9) TMI 1368 - AT - Insolvency and Bankruptcy

Maintenance of status quo by both respondent and petitioner - CIRP initiated by one of the Financial Creditors - HELD THAT - The Ld. NCLT, New Delhi is directed that none of the parties to whom the report of the Independent Commissioner has been served shall rely upon, utilize and quote any word from the Report of the Independent Commissioner before the Ld. NCLT till this matter is decided by this Appellate Tribunal - Further, the Ld. NCLT, New Delhi shall suo motu also itself not quote, rely upon any paragraph, passage or word of the report till the Appeal is decided by this Tribunal - Further, Status Quo as prevailing today shall be maintained by the parties in question. List this Appeal along with Company Appeal (AT) No. 106 of 2021 which is coming on 11th November, 2021.

Summary

Issues:
1. Caveat application not on record for Respondents 1 to 3.
2. Service of Soft Copy of Appeal Paper Book to Respondents pending.
3. Maintenance of status quo as per orders of NCLT and Appellate Tribunal.
4. Insolvency proceedings initiated by Yes Bank and restrictions on the use of the Independent Commissioner's report.

Analysis:
1. The judgment addressed the issue of the caveat application not being on record for Respondents 1 to 3. The advocate for Respondents 1 to 3 accepted the notice but mentioned that the caveat application was not on record. The tribunal directed to ensure the caveat application is on record by the next date.

2. The judgment also discussed the pending service of the Soft Copy of the Appeal Paper Book to the concerned Respondents. The tribunal directed the Appellant's Counsel to serve the Soft Copy of the Appeal Paper Book to the mentioned Respondents if not yet served.

3. The judgment extensively delved into the maintenance of status quo as per the orders of the NCLT and the Appellate Tribunal. It referred to specific orders passed by both tribunals directing the parties to maintain status quo regarding the respondent and the shareholding of the company until the next date of hearing. The Appellant's Counsel highlighted the importance of complying with the status quo order issued by the court.

4. Furthermore, the judgment addressed the initiation of insolvency proceedings by Yes Bank and the restrictions imposed on the use of the Independent Commissioner's report. The tribunal directed that none of the parties shall rely upon or quote any word from the report of the Independent Commissioner before the NCLT until the matter is decided by the Appellate Tribunal. Additionally, the NCLT was instructed not to quote or rely upon any part of the report until the appeal is decided. The judgment emphasized the maintenance of the prevailing status quo by the parties involved.

In conclusion, the judgment provided detailed insights into the various issues such as the caveat application, service of documents, maintenance of status quo, and restrictions on the use of the Independent Commissioner's report, ensuring clarity and compliance with the legal procedures and orders of the tribunals involved.