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2020 (5) TMI 613 - HC - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute - HELD THAT - This Court can take judicial notice of the fact that on account of COVID-19 lock down, the Institutions which are playing the adjudicatory role, including this Court, are entertaining fresh matters through E-mail and through Video Conferencing and are passing appropriate orders. This Court directs the 3rd respondent to entertain the appeal along with the application for interlocutory relief, if the papers are otherwise in order through E-mail / other electronic mode and by giving preference, shall take up the interlocutory application at the first instance through Video Conferencing and give a disposal as expeditiously as possible ; and for a period of three weeks from today, the Insolvency Resolution Professional shall defer decisions to constitute a Committee of Creditors and take over of the Management. The direction, as to the entertainment of the appeal along with the application for interim relief by way of E-mail filing / other electronic mode, is to be taken as general direction by the 3rd respondent, so that similar kind of petitions need not be filed before the Registry of this Court - Petition disposed off.
Issues:
Challenge to order passed by National Company Law Tribunal under Section 7 of IBC, Maintainability of appeal under Section 61 of IBC, Urgency due to COVID-19 lockdown for filing appeal with NCLAT, Direction for 3rd respondent to entertain appeal through E-mail, Interim orders for Insolvency Resolution Professional, Judicial notice of COVID-19 impact on court proceedings. Analysis: The petitioner challenged the order passed by the National Company Law Tribunal under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating corporate insolvency resolution proceedings. The petitioner filed an appeal under Section 61 of the IBC, but the Registry raised a Maintainability Note citing the availability of alternative remedies. The petitioner, through Senior Counsel, highlighted the urgency of the situation due to the COVID-19 lockdown, preventing the physical filing of the appeal with the National Company Law Appellate Tribunal (NCLAT). The Insolvency Resolution Professional appointed following the order was also taking steps to constitute a Committee of Creditors. The court, after considering submissions from both sides, acknowledged the impact of the lockdown on court proceedings and directed the 3rd respondent to entertain the appeal and application for interlocutory relief through E-mail or other electronic modes. The court recognized the exceptional circumstances caused by the COVID-19 lockdown, leading to the adoption of E-mail and Video Conferencing for court proceedings. In response to the urgency presented by the petitioner's counsel, the court issued a specific direction to the 3rd respondent to expedite the appeal process through electronic means and prioritize the interlocutory application through Video Conferencing. The court also instructed the Insolvency Resolution Professional to defer decisions regarding the constitution of a Committee of Creditors and management takeover for a period of three weeks. The interim direction provided by the court for entertaining appeals through E-mail or electronic modes was deemed a general direction for the 3rd respondent to avoid the need for similar petitions to be filed before the court's registry. The Civil Revision Petition was disposed of at the SR stage without costs, and the connected miscellaneous petitions were closed. The court's decision aimed to address the challenges posed by the COVID-19 lockdown on legal proceedings while ensuring the timely resolution of the petitioner's appeal under the IBC.
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