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2023 (1) TMI 1053

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..... ourt. The Adjudicating Authority has, rightly after going through the Prayers of the Appellants and material on record, and also considering the stage of the Liquidation Process, dismissed the Application. Appeal dismissed. - COMPANY APPEAL (AT) (INSOLVENCY) NO. 279 of 2021 COMPANY APPEAL (AT) (INSOLVENCY) NO. 106 of 2021 - - - Dated:- 25-1-2023 - [ Justice Anant Bijay Singh ] Member ( Judicial ) And [ Ms. Shreesha Merla ] Member ( Technical ) For the Appellants : Appeared but appearance not marked For the Respondents : Appeared but appearance not marked JUDGEMENT [ Per ; Shreesha Merla , Member ( T ) ] 1. Challenge in these Appeals, Comp. App. (AT) (Ins.) No.279/2021 and Comp. App. (AT) (Ins.) No.106/2021 is to the Impugned Orders dated 12.03.2021 and 27.02.2020 respectively passed by the Learned Adjudicating Authority (National Company Law Tribunal, New Delhi, Court III) in I.A.4000/2020 in IB No.-404/ND/2018 and in C.A. No. 614/2019 in C.P. (IB) No.-1702(ND)/2019 and respectively. Since both these Appeals arise out of the common facts and are preferred by the same Appellant, they are being disposed of by this common Order. 2. For ready reference .....

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..... hat the Corporate Insolvency Resolution Process ( CIRP ) was over and that the Committee of Creditors ( CoC ) has already recommended for Liquidation of the Corporate Debtor Company. 4. Learned Counsel appearing for the Appellants contended that the Respondent Company/M/s. Premsons Super Steels Private Limited has filed Insolvency Petition (IB) 404(ND)/2018 under Section 10 of the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as The Code ) seeking initiation of CIRP on the strength of forged and doctored documents. Vide Order dated 10.12.2018, CIRP was initiated against the Corporate Debtor Company. It was only in May 2019 that the Appellants got knowledge of the Section 10 Application having been admitted before the Adjudicating Authority. In June 2019, the Appellants filed an Application IB1702(ND)/19 seeking recall and setting aside of the Order dated 10.12.2018, but the said Application was wrongly listed under Section 7 of the Code. On 23.07.2019, the Adjudicating Authority dismissed this Application holding that once CIRP is triggered, a fresh Section 7 Application cannot be entertained. The Appellants assailed the Order dated 23.07.2019, in Mohinish Kum .....

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..... n Global Pvt. Ltd. Vs. Punjab National Bank Ors. Comp. App. (AT) (Ins.) No. 81/2017 in support of his submissions that there was a fraud and that it is mandated to ensure that compliances required to be made in Application under Section 10 of the Code are complete in all respects or not. 7. It is vehemently contended by the Appellants that it was only to deceive this 62.5% Shareholders that the Respondents initiated this Auction. 8. IA 4000/2020, which is the Impugned Order dated 12.03.2021 reads as follows: Counsel for the Applicant is present. Counsel for the Liquidator is present. The relief sought in the application are extracted below: a) Impose the maximum penalty in terms of Section 65 of the IB Code upon Respondents No. 2 and 3 for fraudulent and malicious initiation of CIR proceedings in C.P. No. (IB)- 404(ND)/2018; b) Direct the Insolvency and Bankruptcy Board of India and or any other relevant person/ authority to initiate proceedings against Respondents No. 2 and 3 and their associates/ agents under Sections 65, 72, 77 and/or other applicable provisions of the IB Code as well as the Companies Act, 2013 for furnishing false information, for .....

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..... ute that the Section 10 Application was admitted on 10.12.2018. It is also an admitted fact that the Appellants filed Application IB1702(ND)/2019, which they submit was to recall or set aside the Order of Admission but was wrongly listed under Section 7 of the Code. An Appeal preferred against that Order in Mohinish Kumar Ors. (Supra) was dismissed as withdrawn with a liberty to reagitate the matter. It was observed by the Adjudicating Authority that there was no error apparent on the face of record in IB 404/2019. It is submitted by the Learned Counsel for the Respondent/Liquidator, Mr. Abhishek Anand that the Appellants have approached this Tribunal with unclean hands and that they have filed multiple Applications which were all dismissed and in fact they have no Locus Standi to prefer this Appeal as they are no longer Shareholders of the Companies, as they have transferred their Shares to the second Respondent and have also handed over the Share Certificates to the second Respondent. 11. We observe from the record that the Special Resolution dated 23.06.2018, was attached to the Application filed under Section 10 before the Adjudicating Authority, which consists of the Bo .....

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