2024 (5) TMI 898 - SCH - Insolvency and Bankruptcy

Admission of section 7 application - Rejection of transfer application - proceedings were initiated by the Financial Creditor under Section 7 which proceedings were initially admitted and the application to recall the said order was rejected - HELD THAT - A substantive appeal would lie against the order of admission under the Insolvency and Bankruptcy Code 2016. It would be open to the appellant to raise all the grounds which have been raised in the present appeal before the National Company Law Appellate Tribunal in an appeal against the order of admission dated 3 May 2024 - Appeal disposed off.

Summary

Issues involved: Appeal against the order of admission under Section 7 of the Insolvency and Bankruptcy Code 2016.

Admission Order under Section 7 of the Insolvency and Bankruptcy Code 2016:
The appellant's counsel highlighted the orders of the National Company Law Tribunal (NCLT) dated 26 March 2024 and 24 April 2024. It was revealed during the hearing that the NCLT had admitted the petition under Section 7 of the Insolvency and Bankruptcy Code 2016 on 3 May 2024. The judgment mentioned that a substantive appeal could be pursued against the admission order under the said Code, allowing the appellant to raise all grounds presented in the current appeal before the National Company Law Appellate Tribunal in an appeal against the admission order dated 3 May 2024. The appeal was subsequently disposed of, and any pending application was also resolved.

This judgment primarily addressed the appeal against the admission order under Section 7 of the Insolvency and Bankruptcy Code 2016. The appellant was granted the opportunity to challenge the admission order before the National Company Law Appellate Tribunal, ensuring the right to raise all grounds presented in the current appeal.