2024 (3) TMI 134 - AT - Insolvency and Bankruptcy

Revival of company appeal by Financial Creditor - Order of setting aside of CIRP - HELD THAT - The Financial Creditor is entitle to revive the Company Appeal in view of the liberty granted by this Tribunal itself in its order dated 11.02.2020. The cheques given by the Corporate Debtor having been dishonoured, Appeal deserve to be revived. It is noticed that the Appellant has been opposing the Application on untenable grounds and his only intent is to delay the proceedings. The sequence of the events indicate that the Corporate Debtor did not honour the settlement on basis of which Section 7 application was closed by the Adjudicating Authority by order dated 05.10.2020 and thereafter on one or other pretext has been delaying the proceedings. The Company Appeal is revived - appeal allowed.

Summary

Issues involved: Application for recall of order setting aside Corporate Insolvency Resolution Process.

Issue (i): Admission of application by Adjudicating Authority under section 7.

The Financial Creditor filed an application against the Corporate Debtor under section 7 claiming a financial debt, which was admitted by the Adjudicating Authority.

Issue (ii): Filing of Company Appeal challenging the Adjudicating Authority's order.

Viveck Goel, the Suspended Director of the Corporate Debtor, filed Company Appeal (AT) (Ins.) No.152 of 2020 challenging the Adjudicating Authority's order.

Issue (iii): Withdrawal of Section 7 application.

The Financial Creditor filed an application for withdrawal of the Section 7 application before the Adjudicating Authority, which was mentioned during the Appeal proceedings.

Issue (iv): Setting aside of Corporate Insolvency Resolution Process.

The Tribunal set aside the Corporate Insolvency Resolution Process of the Corporate Debtor based on the Adjudicating Authority's order dismissing the Section 7 application as withdrawn.

Issue (v): Dishonour of post-dated cheques.

The Financial Creditor filed an application based on the dishonour of post-dated cheques by the Corporate Debtor, seeking to recall the order setting aside the Corporate Insolvency Resolution Process.

Issue (vi): Revival of Section 7 application.

The Financial Creditor filed I.A. No. 1124 of 2021 for revival of the Section 7 application, which was initially dismissed but later allowed by the Appellate Tribunal.

Issue (vii): Appeal filed by Corporate Debtor.

The Corporate Debtor filed an appeal against the Appellate Tribunal's order, which was dismissed by the Hon'ble Supreme Court.

Issue (viii): Application for recall based on dishonoured cheques.

The Financial Creditor filed an application for recall based on the dishonour of post-dated cheques by the Corporate Debtor, as permitted by the Tribunal's earlier order.

Issue (ix): Opposition to the application.

The Appellant opposed the application for recall, citing an appeal filed before the Hon'ble Supreme Court and denying the dishonour of cheques without providing a clear denial.

In conclusion, the Tribunal allowed the application for recall, reviving the Company Appeal and imposing a cost on the Appellant for delaying the proceedings.