2021 (3) TMI 247 - SCH - Insolvency and Bankruptcy

Privilege of interim resolution appointed by the Court - Taking extreme step to arrest the Interim Resolution Professional, Mr. Anuj Jain, who was working in that capacity pursuant to the order passed by the Court and entrusted with the functioning of the Company in question - Section 233 of the Insolvency and Bankruptcy Code - HELD THAT - We will examine this aspect of the matter elaborately at appropriate time by treating this application as substantive writ petition filed by the applicant under Section 32 of the Constitution of India and to be numbered accordingly. In the meantime, we direct immediate release of the applicant, Anuj Jain, who is presently in custody of Police Station, Beta-II, District Greater Noida, Uttar Pradesh and had been produced today i.e. 02.03.2021 before the Court of Chief Judicial Magistrate, Gautam Buddh Nagar, Uttar Pradesh - It is directed that the Investigating Officer not to take any coercive action against the applicant in connection with the subject F.I.R. until further orders. List the writ petition after two weeks.

Summary

Issues: Improper handling of a case by Uttar Pradesh Police leading to the arrest of the Interim Resolution Professional, violation of privilege under Section 233 of the Insolvency and Bankruptcy Code, and the directive for immediate release of the applicant.

Improper Handling by Uttar Pradesh Police:
The Supreme Court expressed dismay at the Uttar Pradesh Police's handling of the case, particularly the arrest of the Interim Resolution Professional, Mr. Anuj Jain. The Court noted that the police official involved seemed unaware of the privilege granted to the interim resolution professional by the Court under Section 233 of the Insolvency and Bankruptcy Code. The Court emphasized the need to address this issue thoroughly, treating the application as a substantive writ petition under Section 32 of the Constitution of India.

Immediate Release Directive:
In response to the situation, the Court issued a directive for the immediate release of Mr. Anuj Jain, who was in custody at Police Station Beta-II in District Greater Noida, Uttar Pradesh. The directive also prohibited the Investigating Officer from taking any coercive action against the applicant related to the FIR until further orders. Furthermore, the Court issued a notice to the Investigating Officer, Mr. Bijender Singh, to explain why appropriate action should not be taken against him for his drastic actions. Mr. Singh was required to file a personal affidavit within two weeks to clarify his position.

Future Proceedings:
The Court scheduled the writ petition for a hearing after two weeks. Additionally, the Court ensured the immediate communication of the release order to the concerned Judge's office and Police Station Beta-II in District Greater Noida, Uttar Pradesh. The Registrar(Judl.) of the Court was tasked with personally informing the concerned Judge's office via telephone to ensure Mr. Anuj Jain's release without imposing any conditions.