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2024 (2) TMI 1092

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..... hallenged on the ground that CIRP cannot proceed against a NBFC, the CoC and the Resolution professional should have been more cautious in proceeding and incurring costs in the CIRP of the Corporate Debtor. The ends of justice be served in giving liberty to the Resolution Professional to file an application before the Adjudicating Authority to take a decision on payment of balance cost, as to whether entire balance cost is fully payable and as to whether entire cost be borne by the Appellant or shared by all the members of CoC and/or Resolution Professional. Taking into consideration the sequence of events and facts which have taken place in the CIRP proceedings of the Corporate Debtor, the Adjudicating Authority shall pass orders in the .....

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..... FC, however, despite the fact the Corporate Debtor was NBFC CIRP proceeded by the impugned order. The Adjudicating Authority allowed the application and set aside the CIRP. 3. Appellant who was Applicant in Section 7 application has filed this appeal only on limited ground i.e. observation made in the last line of Para 13 and direction issued in Para 16 in so far as direction that entire cost be paid by the Applicant/Appellant. 4. Learned counsel for the Appellant submits that in so far as last line of Para 13, when application under Section 65 was dismissed, there was no occasion to observe that order dated 16.12.2023 was obtained by parties by concealment of material fact or playing fraud on the Court. 5. We accept the above subm .....

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..... to proceed and further after Resolution Professional having coming to know that status of Corporate Debtor as NBFC is still shown in the portal of RBI, appropriate steps ought to have been taken. It is submitted that the application was filed by the Resolution Professional, which was withdrawn. 9. In a situation where CIRP has been admitted and there is interim order passed by the Appellate Authority to the effect that in the CIRP no final decision shall be taken with regard to resolution plan since the order was challenged on the ground that CIRP cannot proceed against a NBFC, we are of the view that the CoC and the Resolution professional should have been more cautious in proceeding and incurring costs in the CIRP of the Corporate Deb .....

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