2024 (11) TMI 839 - SCH - IBC

Non-compliance with sub-section 1 of Section 9 of the IB Code - HELD THAT - Issue notice on the application for stay, returnable on 18th November, 2024. By order dated 26th November, 2020, a company has been impleaded as Additional Corporate Debtor in the pending application under Section 9 (1) of the Insolvency and Bankruptcy Code, 2016 2016. Prima facie, the order is illegal as compliance with sub-section 1 of Section 9 of the IB Code has not been made. The order dated 26th November, 2020 passed by the National Company Law Tribunal, Kochi Bench, Kerala is stayed - the main application under Section 9 of the IB Code can always proceed against the original Corporate Debtor.

Summary

The Supreme Court admitted an appeal for hearing regarding an order under the Insolvency and Bankruptcy Code, 2016. The Court stayed the order that impleaded a company as an Additional Corporate Debtor due to non-compliance with the IB Code. The main application can proceed against the original Corporate Debtor. The application for stay is returnable on 18th November, 2024.