2023 (3) TMI 244 - AT - Insolvency & Bankruptcy

Validity of resolutions passed in the 5th COC meeting of the Corporate Debtor - quashing of illegal decision of the COC as passed in the 5th COC meeting - seeking to pass an ex-parte ad interim order staying the decision and/or Resolutions passed in the 5th COC meeting for change of management of the Applicant No. 1.

HELD THAT:- The impugned order does not grant any interim relief in terms of any of the reliefs prayed in the I.A./656/2023. The limited direction issued by the Adjudicating Authority is “however, in order to ensure that the applicant’s rights are not adversely affected, the resolution passed in the 5th CoC meeting of the Corporate Debtor vide Item No. B2 may not be further acted upon by the Respondents”. Parties in the application were heard on 01st and 2nd February, 2023 which is apparent from the proceedings brought before this Tribunal and fixed 15.02.2023 for hearing which hearing could not take place and date was fixed by the Adjudicating Authority for hearing on 01st and 2nd March, 2023 on the application.

No exception can be taken to the order passed by the Adjudicating Authority on 15.02.2023 extending the interim order and fixing the next date on 01st and 2nd March, 2023 - at the stage when the Adjudicating Authority is seized of the application I.A. 656/2023 and had already fixed date on 1st and 2nd March, 2023 for hearing of the application, this Appeal need not to be entertained.

Hon’ble Supreme Court in Wander Ltd. and Another Vs. Antox India P. Ltd. [[1990 (4) TMI 280 - SUPREME COURT]] had laid down that in exercise by the Court if it is shown to be exercised arbitrarily, or capriciously or perversely or where the court had ignored the settled principles of law regulating grant or refusal of interlocutory injunctions, Appellate Court can interfere - It is not found that the exercise of jurisdiction of the Adjudicating Authority in the present case is arbitrary, capricious, or perverse.

The ad-interim-order passed by the Adjudicating Authority shall not in any manner influence the decision on the application on merits - appeal disposed off.