2023 (8) TMI 357 - SCH - Insolvency and Bankruptcy

Validity of SCN issued - payment of Rs.1 crore has been made to respondent no. 1 operational creditor - HELD THAT - It will be open to the appellant to point out the aforesaid factum before the National Company Law Tribunal (NCLT)/National Company Law Appellate Tribunal (NCLAT) - A number of applications have been filed for intervention/impleadment by other operational/financial creditors of respondent no. 2 Balaji Fiber Reinforce Pvt. Ltd. It will be open to the appellant and the parties who have filed application(s) for intervention/impleadment to take steps under the Insolvency and Bankruptcy Code, 2016. Appeal disposed off.

Summary

Issues involved:
The issues involved in the judgment are payment made to an operational creditor, applications for intervention/impleadment by other creditors, and the dismissal of the appeal.

Payment to Operational Creditor:
The appellant made a payment of Rs.1 crore to respondent no. 1, Westin Resin and Polymers Pvt. Ltd., an operational creditor. The appellant is allowed to bring this fact to the attention of the National Company Law Tribunal (NCLT) or National Company Law Appellate Tribunal (NCLAT). The payment was made without prejudice to the rights and contentions of both parties.

Applications for Intervention/Impleadment:
Several applications were filed for intervention/impleadment by other operational/financial creditors of respondent no. 2, Balaji Fiber Reinforce Pvt. Ltd. Due to the number of applications and the circumstances, the court found no good ground to issue notice in the present appeal, leading to its dismissal. The parties involved are advised to take necessary steps under the Insolvency and Bankruptcy Code, 2016.

Dismissal of the Appeal:
The appeal was dismissed by the court, and as a result, no further orders were required to be passed on the applications for intervention/impleadment. The pending applications, if any, were disposed of in light of the dismissal of the appeal.