2021 (3) TMI 1430 - AT - Insolvency and Bankruptcy

Frequent adjournments being granted by the Adjudicating Authority and re-notifying the matter time and again - HELD THAT - There is need to introduce provision in the legal framework to vest power of superintendence and control qua National Company Law Tribunals in this Appellate Tribunal. Due to lack of supervisory jurisdiction many aggrieved persons are compelled to adopt the route of filing the appeal though there is no order on merit. This appeal is disposed off by directing the Adjudicating Authority to take a call and pass an order on merit in regard to the Resolution Plan pending consideration before it within two weeks.

Summary

Issues:
- Appellant aggrieved by frequent adjournments by Adjudicating Authority
- Resolution Plan pending approval since 2019
- Lack of supervisory jurisdiction for National Company Law Tribunals
- Appeal filed despite no order on merit

Analysis:
The judgment by the National Company Law Appellate Tribunal, Principal Bench, New Delhi, addresses the issue of the Appellant being dissatisfied with the Adjudicating Authority's continuous granting of adjournments and repeated rescheduling of the matter. The Appellant's counsel highlighted that a Resolution Plan has been awaiting approval since 2019, with the case being adjourned a significant 18 times. The Tribunal acknowledges this recurring problem and emphasizes the necessity of introducing a provision within the legal framework to grant supervisory powers over National Company Law Tribunals to the Appellate Tribunal to prevent such situations.

Furthermore, the Tribunal notes that due to the absence of supervisory jurisdiction, many affected individuals are forced to pursue the appeal route even in the absence of a substantive order. In response to these concerns, the Tribunal issues a directive to dispose of the appeal by instructing the Adjudicating Authority to make a decision on the Resolution Plan within a strict timeline of two weeks. This decision aims to ensure timely resolution and prevent unnecessary delays caused by repeated adjournments.

In conclusion, the judgment highlights the importance of addressing the issue of frequent adjournments and delays in the approval process of Resolution Plans before the Adjudicating Authority. It underscores the need for a mechanism to supervise and regulate the functioning of National Company Law Tribunals to prevent such delays and ensure efficient resolution of matters. The directive issued by the Tribunal aims to expedite the decision-making process and uphold the principles of timely justice delivery in corporate insolvency cases.