2021 (1) TMI 757 - Tri - Insolvency and Bankruptcy

Allegation of disobedience of order filed against officials/employees of the Corporate Debtor - section 19(2) read with Section 34(3) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - It appears that the matter requires a detailed hearing for an overall view of the situation. Therefore, we are giving them further time for a detailed hearing, before taking any coercive steps in this matter. Hence, list the matter on 14/10/2020. In the meantime, the parties are directed to complete their pleadings by exchanging affidavit-in-reply and rejoinder without fail. The Registry is directed to send e-mail copies of the order forthwith to all the parties inclusive of the Counsel.

Summary

Issues:
Alleged disobedience of orders by respondents regarding handing over keys and cooperation to the Liquidator.

Analysis:
The Liquidator filed a Contempt Application against the respondents for disobeying orders dated 17/07/2020 and 14/08/2020. The orders required the respondents to provide assistance, hand over keys, depute staff, and cooperate with the Liquidator. Despite this, the respondents failed to comply with the directives. Some respondents filed appeals, but no stay was granted. A suggestion was made to appoint Special Officers to assess the situation on the premises. Two Special Officers were appointed to report on the situation within 2 weeks. The matter was adjourned for a detailed hearing on 14/10/2020, and parties were directed to complete their pleadings by exchanging affidavits.

The Liquidator submitted that the respondents did not hand over the keys as directed by the Adjudicating Authority. The Liquidator sought compliance with the orders and highlighted that some respondents had filed appeals and petitions, but no stay was granted. The Adjudicating Authority appointed Special Officers to assess the situation and report back within 2 weeks. The matter was adjourned for a detailed hearing, and parties were instructed to complete their pleadings by exchanging affidavits.

The Adjudicating Authority noted the non-compliance of the respondents with the orders to hand over keys and cooperate with the Liquidator. Despite appeals and petitions filed by some respondents, no stay was granted. Special Officers were appointed to assess the situation on the premises and provide a report within 2 weeks. The matter was adjourned for a detailed hearing, and parties were directed to complete their pleadings by exchanging affidavits.

In conclusion, the judgment addressed the alleged disobedience of orders by the respondents regarding handing over keys and providing cooperation to the Liquidator. Despite appeals and petitions, no stay was granted, and Special Officers were appointed to assess the situation. The matter was adjourned for a detailed hearing, emphasizing the importance of compliance with the directives issued by the Adjudicating Authority.