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2019 (11) TMI 290 - AT - Insolvency and BankruptcyJurisdiction - power of Adjudicating Authority has to pass order u/s 213 of the Companies Act, 2013 - whether the ‘Adjudicating Authority’ which is ‘National Company Law Tribunal’ having dual jurisdiction under the ‘Companies Act, 2013’ and the’ Insolvency and Bankruptcy Code, 2016’ can direct the Central Government to refer the matter to the ‘Serious Fraud Investigation Office’ (SFIO) for further investigation into the affairs of the ‘Corporate Debtor’, Bank of Maharashtra and other group of companies including the Directors of the companies of Corporate Debtor and group companies and officials of Bank of Maharashtra basing it on the ‘Forensic Audit Report’? HELD THAT:- As per Section 60(1) of the I&B Code the National Company Law Tribunal having territorial jurisdiction over the place where the registered office is located will be the Adjudicating Authority, in relation to insolvency resolution and liquidation for corporate persons including corporate debtors and personal guarantors - The provision of this section makes it clear that the National Company Law Tribunal is empowered to deal with insolvency resolution and liquidation for corporate persons including corporate debtor and others. Merely because additional power of Adjudicating Authority has been vested, the power of the National Company Law Tribunal under the Companies Act, 2013 does not stand extinguished. In the case of Y. SHIVRAM PRASAD AND ASSET RECONSTRUCTION COMPANY (INDIA) LTD. VERSUS S. DHANAPAL & ORS. AND SERVALAKSHMI PAPER LTD. & ORS [2019 (5) TMI 386 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI], the Appellate Tribunal held that the Adjudicating Authority has dual role of ‘Adjudicating Authority’ and ‘National Company Law Tribunal’ for the purpose of ‘I&B Code’ - Hon’ble Supreme Court in SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. [2019 (1) TMI 1508 - SUPREME COURT] while dealing with the matter of settlement between the parties also observed that the ‘National Company Law Tribunal’ has inherent power under Rule 11 of the National Company Law Tribunal Rules, 2016. Thus, the ‘Adjudicating Authority’ which is the ‘National Company Law Tribunal’ has dual and interwoven role and power to pass order under Section 213 of the Companies Act, 2013 read with Rule 11 of the National Company Law Tribunal Rules, 2016. Therefore, in public interest, it is always open to the ‘National Company Law Tribunal’ after giving a reasonable opportunity of being heard to the parties concerned refer the matter to the Central Government for investigation, if the Tribunal/Adjudicating Authority forms a prima facie opinion that acts of fraud have been committed by company or group of companies or its Director(s) or officers - In the present case ‘Forensic Audit Report’ alleged that the members of the ‘Corporate Debtor’ and its ‘Group Companies’ along with officers of the ‘Bank of Maharashtra’ have committed certain fraud, which, inter alia, suggest that a sum of ₹ 3,172.25 Lakhs are receivable by the ‘Corporate Debtor’ - The Appellant and others were given reasonable opportunity of hearing by Adjudicating Authority. As such no interference is called for against the impugned order. Appeal dismissed.
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