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TMI Blog2023 (10) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... he order dated 24.01.2020 which came to be passed in CA (AT) (Ins) No. 131 of 2020 in the matter of Phoenix ARC Pvt. Ltd. Vs. Patna Highway Projects Ltd. & Anr. The relevant portion of the order dated 24.01.2020 is reproduced for a quick reference:- "In the meantime, the Interim Resolution Professional will not constitute any Committee of Creditors, if not yet constituted. However, he will ensure that the company remains going concern and will take assistance of the (suspended) Board of Directors. The persons who are working will perform their duties including the paid Directors. The person who is authorised to sign the bank cheques may sign cheques only after authorisation of the Interim Resolution Professional' with counter signature of the Interim Resolution Professional' at the back side of the cheques. In such case, the Bank shall release the payment. The Interim Resolution Professional will place this order before the Banks, in which accounts of Corporate Debtor are maintained. The Bank Account(s) of the Corporate Debtor be allowed to be operated for day-to-day functioning of the Company such as for payment of current bills of the suppliers, salaries and wages of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as, the issue of the locus standi is concerned, he has relied upon another decision of the Hon'ble Supreme Court in the case of Girish Mittal Vs. Parvati V. Sundaram & Anr. (2019) 20 SCC 747 to contend that the contempt can be initiated by an aggrieved third party. 8. On fact, it is submitted that the Petitioner came to know from the order of the Patna High Court passed in Criminal Miscellaneous No. 13844 of 2023 that the Petitioners therein were the promoters /directors of the I Value Advisors i.e. PMC. It is submitted that in the said case FIR was registered in Kudhani (Turki O.P) P.S. Case No. 587 of 2022 and was challenged but the petition was dismissed. 9. It is further submitted that the Petitioner was not aware about the appointment of PMC till then that it was appointed in June, 2020. 10. On the other hand, while contesting the petition, Sr. Counsel Ramji Srinivasan appearing on behalf of the Respondent No. 2 has argued that the Petitioner was very much present in various meetings of the CoC i.e. 3rd CoC meeting held on 10.09.2020 and 04th CoC meeting held on 16.09.2020. It is further submitted that the Petitioner was however not present by their choice, in the 2nd CoC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company remains a going concern and will take assistance of the suspended board of directors. It is submitted that the RP was de-facto in charge of the Corporate Debtor and was also asked to take assistance of the suspended board of directors. 13. In the end, it is submitted that the present petition is totally frivolous and has been filed with the ulterior motive which deserves to be dismissed with exemplary costs. 14. Sr. Counsel Krishnendu Datta appearing on behalf of the Respondent No. 1 (RP) has opened his argument, while contesting the petition, on the ground of limitation. It is submitted that this Court has the jurisdiction to issue contempt order under Section 425 of the Companies Act, 2013. The said provision is reproduced as under:- "Section 425: Power to punish for contempt. *425. The Tribunal and the Appellate Tribunal shall have the same jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the provisions of the Contempt of Courts Act, 1971, which shall have the effect subject to modifications that- (a) the reference therein to a High Court shall be construed as inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder passed by this Court was not an order in rem but in personam. He also submitted that the RP has not violated any part of the direction contained in the order dated 24.01.2020. In this regard, he has referred to Section 17 of the Code to contend that as soon as he was appointed as the IRP, Section 17(1)(a) provides that the management of the affairs of the corporate debtor shall vest in the interim resolution professional, Section 17(1)(b) further provides that the powers of the board of directors or the partners of the corporate debtor, as the case may be, shall stand suspended and shall be exercised by the interim resolution professional and Section 17(1)(c) further provides that the officers and managers of the corporate debtor shall report to the interim resolution professional and provide access to such documents and records of the corporate debtor as may be required by the interim resolution professional. He has also referred to Section 17(2) wherein the powers of the RP vis a vis management of the CD are delineated. He has also referred to Section 19 of the Code where he can seek cooperation from the personnel of the Corporate Debtor. He has then referred to Section 20(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rem which could have affected a person in the street, therefore, the contempt was filed because of the direction issued by the Hon'ble Supreme Court were not followed but here is the case in which the direction issued was between the parties, therefore, it was a decision in personam. 24. Be that as it may, even on merits we are satisfied that there is no contempt made out in this case because the order which was passed on 24.01.2020 was only to the extent that the CoC shall not be constituted if it is not yet constituted and the RP has to ensure that the company remains a going concern which is also the spirit of Section 20(1) of the Code and further the RP was directed to take assistance of the suspended board of director which is again the spirit of Section 19 of the Code. 25. It appears to us that the Petitioner has some ulterior motive in filing this petition as stated by the Counsel for the Respondents that the Petitioner is filing various petitions in various court, therefore, it would be just and expedient if this petition is dismissed with exemplary costs so that it may somehow, if not to punish the Petitioner for filing frivolous petition in court and wasting its time bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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