2021 (7) TMI 1437 - AT - Insolvency and Bankruptcy

Admission of Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 - time period for filing appeal - HELD THAT - Under Section 61(2) of the IBC, the period for filing of Appeal is 30 days and the time which can be condoned by this Tribunal beyond the period of Appeal is of 15 days. The impugned order being dated 20.09.2019, the limitation expired after period of Appeal and another 15 days and the present Appeal is clearly time barred. The ground raised is of limitation with regard to the debt concerned. What appears is that the Corporate Debtor was declared NPA on 15.09.2017. The record does not disclose the date of filing of Application under Section 7 of the IBC. However, the impugned order itself is of 20.09.2019 and there is no substance in the claim that the debt was time barred - Appeal not admitted and is dismissed. Liquidation order of Corporate Debtor - HELD THAT - Considering Impugned Order, the record and the time bound procedure under the IBC, we do not think that granting stay to the liquidation proceeding would be appropriate. If the Appellant succeeds, it would be for this Tribunal to mold relief. List the Appeal for Admission (After Notice) Hearing on 16th September, 2021.

Summary

Issues involved:
1. Appeal against order of admission of Application under Section 7 of the Insolvency and Bankruptcy Code, 2016.
2. Appeal against order of liquidation passed in regard to the same Corporate Debtor.

Analysis:

Issue 1: Appeal against order of admission of Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (Company Appeal (AT) (Insolvency) No.525 of 2021):
The Appellant, claiming to be the Promoter/ Shareholder of the Corporate Debtor, filed an appeal against the order of admission of the application under Section 7 of the IBC against the Corporate Debtor. The appeal was filed against the impugned order dated 20.09.2019. The Tribunal noted that the appeal was time-barred as the period for filing an appeal under Section 61(2) of the IBC had expired. Additionally, the ground raised regarding the debt being time-barred was dismissed as the impugned order itself was not time-barred. The Tribunal also highlighted a previous appeal by another individual related to the same impugned order, which was dismissed, making the present appeal by the Shareholder not maintainable. Consequently, the Tribunal declined to admit the appeal.

Issue 2: Appeal against order of liquidation passed in regard to the same Corporate Debtor (Company Appeal (AT) (Insolvency) No.526 of 2021):
In this appeal, the Appellant sought a stay on the steps being taken by the Liquidator who had issued a notice for e-auction. The Tribunal, considering the impugned order, the record, and the time-bound procedure under the IBC, decided not to grant a stay on the liquidation proceeding. The Tribunal scheduled the appeal for an 'Admission (After Notice) Hearing' on 16th September 2021, indicating that if the Appellant succeeds, relief would be determined by the Tribunal at that stage.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved, the arguments presented, and the decisions made by the National Company Law Appellate Tribunal, Principal Bench, New Delhi.