2021 (8) TMI 1150 - Tri - Insolvency and Bankruptcy

Seeking re-initiation of the matter before the Hon'ble Tribunal for further proceedings - seeking appointment of a Liquidator - seeking direction to Liquidator to take steps towards recovery of Loan Advanced - HELD THAT - The Applicant has failed to produce any provision of law by which this Adjudicating Authority is empowered to review its own order. Since the Liquidation proceeding has already been terminated by this Adjudicating Authority vide and the file has been consigned to the record room, there is no scope to review the Order dated 09th January, 2020 at this stage. Application dismissed.

Summary

Issues:
1. Appointment of a Liquidator and revival of Corporate Debtor
2. Termination of liquidation proceedings and review of the order

Appointment of a Liquidator and revival of Corporate Debtor:
The Applicant filed an IA seeking the appointment of a Liquidator, re-initiation of the matter before the Tribunal for further proceedings, recovery of a loan advanced to a company, and revival of the Corporate Debtor. The Ld. Counsel argued that the termination of liquidation proceedings by the Adjudicating Authority was not in line with the provisions of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority had terminated the proceedings, directing the winding up to be entertained by the High Court. The Applicant failed to provide any legal provision empowering the Authority to review its own order. The Tribunal found no merit in the Applicant's application, stating that since the liquidation proceedings had been terminated and the file consigned to the record room, there was no scope for a review at that stage.

Termination of liquidation proceedings and review of the order:
The Tribunal reviewed the Order dated 09.01.2020, where the liquidation proceedings were terminated, and the case was directed to be entertained by the High Court. The Order referred to a previous High Court judgment emphasizing that both the NCLT and the Company Judge cannot proceed with liquidation or winding up simultaneously to avoid confusion. The High Court's order dated 16.08.2018 was not brought to the notice of the NCLT when it initiated liquidation proceedings on 11.10.2018. Consequently, the High Court admitted the petition in consideration of its previous order. The Tribunal highlighted the lack of legal provision allowing the Adjudicating Authority to review its order once the liquidation proceedings had been terminated and the file archived. Therefore, the Tribunal dismissed the Applicant's request for a review, finding no basis to reconsider the termination of the liquidation proceedings.

This detailed analysis of the judgment addresses the issues of the appointment of a Liquidator, revival of the Corporate Debtor, termination of liquidation proceedings, and the review of the order, providing a comprehensive understanding of the legal reasoning and decisions made by the Tribunal.