2024 (5) TMI 894 - SCH - Insolvency and Bankruptcy

Initiation of proceedings under the Insolvency and Bankruptcy Code, 2016 - it was held by NCLAT that ' The Adjudicating Authority erred in passing the Impugned Order dated 13.10.2021 admitting application under Section 7 of the Code and therefore Impugned Order deserves to be set aside accordingly' - HELD THAT - The observations recorded in the impugned judgment(s) agreed upon that initiation of proceedings under the Insolvency and Bankruptcy Code, 2016, was not the appropriate remedy given the factual background and the disputes arising in the present cases. Appeal dismissed.

Summary

Issues involved: Delay condonation in Civil Appeal, appropriateness of initiating proceedings under the Insolvency and Bankruptcy Code, 2016.

Delay Condonation in Civil Appeal:
The Supreme Court, comprising HON'BLE MR. JUSTICE SANJIV KHANNA and HON'BLE MR. JUSTICE DIPANKAR DATTA, condoned the delay in Civil Appeal(D) No. 3564 of 2024.

Appropriateness of Initiating Proceedings under the Insolvency and Bankruptcy Code, 2016:
The Court agreed with the observations in the impugned judgment(s) that initiating proceedings under the Insolvency and Bankruptcy Code, 2016, was not the suitable remedy considering the factual background and disputes in the present cases. Consequently, the appeals were dismissed. However, it was clarified that these observations and the dismissal of the appeals would not be considered as binding findings in any other pending proceedings or those that the parties may initiate. Any pending application(s) were directed to stand disposed of.