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2023 (6) TMI 374 - AT - Insolvency and BankruptcyExclusion of claim of the fourth Respondent IARC from the list of the Financial Creditors of the Corporate Debtor and consequentially directing her to declare the fresh list of the Financial Creditor with their revised percent of voting rights in the CoC - Non-speaking order - violation of principles of natural justice - HELD THAT - This Tribunal is of the considered view that in the interest of Justice, an opportunity may be accorded to the Appellant, herein to be heard on merits, before the Adjudicating Authority and therefore, it is a fit case to remand the matter to the Adjudicating Authority and the Adjudicating Authority shall decide the Application within a period of four weeks from the date of this Order. It is made clear that this Tribunal has not commented on the merits of the matter and the Adjudicating Authority shall proceed in accordance with Law, uninfluenced by any observations in this Order. The matter is remanded back to the Adjudicating Authority for fresh adjudication on merits - Appeal allowed.
Issues involved: Appeal against Impugned Order dated 13/01/2023 passed in IA/693/IB/2020 in CP/1006/IB/2018 by National Company Law Tribunal, Chennai Bench regarding exclusion of interest claimed by Respondent 2 & 3 and claim of the fourth Respondent IARC from the list of Financial Creditors of the Corporate Debtor.
Issue 1: Exclusion of interest claimed by Respondent 2 & 3 and claim of the fourth Respondent IARC from the list of Financial Creditors The Appellant, a Suspended Director of M/s GK Steel and Allied Industries Limited, appealed against the Impugned Order dismissing IA No. 693/2020. The Adjudicating Authority was directed to exclude the interest claimed by Respondent 2 & 3 towards the outstanding dues of the Corporate Debtor for the period of 01.06.1999 to 3012.2016 due to the Corporate Debtor being a sick undertaking. The Appellant contended that the claim of IARC was invalid, citing the assignment of debt from ICICI bank to Standard Chartered Bank and then to IARC. The Tribunal noted that the O.A. was still pending and directed the examination of the legality of the Assignment Deed of 2006. The Appeal was dismissed, keeping the legality of the Assignment Deed open for the Principal Officer of DRT to decide. Issue 2: Non-speaking Order and remand to Adjudicating Authority The Appellant argued that the Impugned Order was a non-speaking Order that did not provide reasons for dismissal and violated the Principles of Natural Justice. It was contended that Prayer 1 was wrongly recorded as not pressed. The Tribunal found merit in the Appellant's request for an opportunity to be heard on the objections raised regarding the Constitution of the CoC. Consequently, the matter was remanded to the Adjudicating Authority for fresh adjudication on merits within four weeks, ensuring compliance with legal procedures and principles of justice. This judgment by the National Company Law Appellate Tribunal in Chennai involved the exclusion of interest claimed by certain Respondents and the claim of another Respondent from the list of Financial Creditors. The Tribunal dismissed the Appeal regarding the exclusion of interest but remanded the matter to the Adjudicating Authority for fresh adjudication on the objections raised, emphasizing the importance of due process and adherence to legal principles.
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