2022 (4) TMI 825 - Tri - Insolvency and Bankruptcy

Seeking transfer of petition - Rule 16 (d) and 11 of NCLT Rules, 2016 r/w Section 60(5) of the IBC, 2016 - HELD THAT - It is now stated that Bench No. 2 has already reserved Order in IB-415(ND)2017, therefore, it is prayed that the other two matters are also placed before the same Bench. Considering the reasons, in relation to the prayer, the application is allowed.

Summary

Issues:
Liquidator's application under Rule 16 (d) and 11 of NCLT Rules, 2016 r/w Section 60(5) of the IBC, 2016 seeking transfer of petition No. CP No. 435(IB) of 2017 pending in NCLT Bench-III, New Delhi, to NCLT Bench-II, New Delhi, by tagging with Petitions CP No. (IB)415(ND) of 2017 & CP No. (IB) 417 (ND) of 2017.

Analysis:

1. Reasons for Application (Paras 3-6):
- The Liquidator filed an application under Rule 16 (d) and 11 of NCLT Rules, 2016, seeking the transfer of pending petitions related to three group companies to ensure efficient liquidation proceedings.
- The promoters of the group companies filed for CIRP under section 10 of the Code, leading to the commencement of CIRP against the companies.
- Notably, the promoters/directors of the companies are the same, and significant transactions were conducted by closely related companies within the group.
- The Liquidator argued that consolidating the petitions (CP. No. - (IB) 435 (ND) of 2017; CP. No. -(IB) 415 (ND) of 2017; & CP. No. (IB) 417 (ND) of 2017) for adjudication would streamline the liquidation process.
- Delays in the liquidation process were attributed to different dates set by adjudicating authorities in each case, leading to conflicting orders from different benches of NCLT in New Delhi.
- The Principal Bench of NCLT in New Delhi issued a common order on 26.06.2020 in all group company matters to address these issues.

2. Decision on the Application:
- Bench No. 2 had already reserved an order in IB-415(ND)2017, prompting the Liquidator to request placing the other two matters before the same Bench for consistency.
- The application was allowed based on the reasons presented in the application paragraphs, emphasizing the need for efficiency and coherence in the liquidation proceedings.
- The request of the Ex-Director to postpone the hearing was declined, citing previous opportunities provided for participation.

This judgment reflects the Tribunal's consideration of the Liquidator's application for the transfer of pending petitions related to group companies to streamline the liquidation process and avoid conflicting orders. The decision to consolidate the petitions for adjudication by a single Bench highlights the importance of efficiency and consistency in insolvency proceedings, ultimately serving the interest of equity and good conscience.