2022 (9) TMI 1523 - AT - Insolvency and Bankruptcy

Dismissal of application invoking Section 70 of the Insolvency and Bankruptcy Code, 2016 - dismissed only on the ground that the Tribunal lacks jurisdiction to entertain such an application - HELD THAT - Reliance placed in the matter of 'Vivek Prakash (Suspended Director MD) vs. Dinesh Kr. Gupta, Liquidator of M/s. Jarvis Infratech Pvt. Ltd. Anr.' 2022 (2) TMI 906 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHI in which it has been held that the RP is not empowered to initiate the prosecution but at the same time, it has been held that in order to initiate prosecution under Section 70 the complaint has to be filed by the Insolvency and Bankruptcy Board of India (IBBI) or Central Government or person authorized by the Central Government. There are no error in the order of the Ld. Tribunal, therefore, the present Appeal is hereby dismissed.

Summary

Issues: Jurisdiction of the Tribunal to entertain application under Section 70 of the Insolvency and Bankruptcy Code, 2016

Paragraph 1: The appeal was against an order dismissing an application filed under Section 70 of the Insolvency and Bankruptcy Code, 2016, citing lack of jurisdiction. The Counsel for the Appellant referenced a previous decision of the Tribunal where it was held that the Resolution Professional (RP) is not authorized to initiate prosecution under Section 70, and only certain entities like the Insolvency and Bankruptcy Board of India (IBBI) or the Central Government can do so.

Paragraph 2: The Tribunal found no error in the order of the lower Tribunal and dismissed the present appeal. However, the Resolution Professional was granted liberty to file an appropriate application with the IBBI if advised to do so.