2019 (3) TMI 350 - AT - Insolvency and Bankruptcy

Maintainability of appeal filed by Corporate Debtor - Held that - We are not adjourning the case as even on appearance of the counsel we cannot entertain the appeal preferred by Corporate Debtor being not maintainable - Appeal dismissed being not maintainable.

Summary

Issues:
1. Maintainability of the appeal by the Corporate Debtor.
2. Substitution of the Corporate Debtor in the appeal.
3. Failure to file necessary documents by the Corporate Debtor.
4. Dismissal of the appeal due to non-maintainability.

Issue 1: Maintainability of the appeal by the Corporate Debtor
The appeal was filed by 'M/s Radius Infratel Pvt. Ltd.' (Corporate Debtor) against the order passed by the Adjudicating Authority. The Hon'ble Supreme Court's decision in 'Innoventive Industries Ltd. Vs. ICICI Bank and Ors.' was cited, stating that an appeal by the Corporate Debtor was not maintainable once an insolvency professional was appointed to manage the company. The Court allowed time for a shareholder to substitute as the appellant.

Issue 2: Substitution of the Corporate Debtor in the appeal
Despite the time granted, no affidavit or petition for substitution was filed by any shareholder of the Corporate Debtor. The Court allowed an extension of time for filing the necessary documents, emphasizing it as the last and final opportunity. The Financial Creditor was to reply within 10 days of the submission of the documents.

Issue 3: Failure to file necessary documents by the Corporate Debtor
On the subsequent date, the representative of the Corporate Debtor informed the Court that the lawyer was appearing before the Debts Recovery Tribunal. The Court noted that the appeal by the Corporate Debtor was not maintainable due to the Supreme Court's decision. As a result, the appeal was dismissed, but the order did not prevent a Shareholder/Director from moving an appeal if not barred by limitation.

Issue 4: Dismissal of the appeal due to non-maintainability
The Court dismissed the appeal by the Corporate Debtor as it was not maintainable according to the Supreme Court's decision in 'Innoventive Industries Ltd. Vs. ICICI Bank and Ors.' The order clarified that the dismissal did not prevent a Shareholder/Director from filing an appeal if within the legal limitations.