TMI Blog2022 (3) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ous alternate remedy. The proceedings under challenge are under the Insolvency and Bankruptcy Code. When the Code itself provides for an appellate remedy, this Court would not be justified in adjudicating on the sustainability of the order passed by the NCLT in writ proceedings. The Adjudicating Authority, under Section 100, is to decide whether to admit or reject the application for IRP. From a reading of Chapter III, Part III of the IBC, it is obvious that in the matter of initiating an IRP, the role of the Resolution Professional is limited to making appropriate recommendations to the Adjudicating Authority - Resolution Professional is required to give reasons in support of his recommendations. The Adjudicating Authority is the body w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited. The petitioners seek to quash Ext.P11 Order of the National Company Law Tribunal, Kochi Bench. The petitioners further seek to adjudicate CP(IBC)13/KOB/2021, CP(IBC)/14/ KOB/2021, CP(IBC)/15/KOB/2021, CP(IBC)/16/KOB/2021, CP(IBC)/17/KOB/2021, CP(IBC)/19/KOB/2021 de novo after considering the submissions made by the petitioners in their counter affidavit. 2. The petitioners state that the Corporate Debtor availed certain financial facilities from the Federal Bank Limited. The facilities were secured by the 1st petitioner executing several agreements of guarantee. The agreement of guarantee executed by the 1st petitioner stated that the liability shall not exceed a sum of ₹18 Crores. The Corporate Debtor failed to service its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ode against the petitioners herein before the NCLT, Kochi Bench for initiating insolvency resolution process. Petitioners 1, 2, 4, 5 and 6 filed their counter affidavit. The petitioners submitted before the Tribunal that one of the respondents, Susan Zachariah, passed away even before filing of the applications against the Corporate Debtor. Without considering the submissions made by the petitioners, the NCLT passed Ext.P11 order dated 27.09.2021 and appointed an Insolvency Resolution Professional. 6. The petitioners challenge Ext.P11 order. The petitioners state that the impugned Ext.P11 order demonstrates clear non-application of mind. This is evident from the fact that proceedings were initiated against a dead person. The petitioners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ides that notwithstanding anything to the contrary contained under the Companies Act 2013, any person aggrieved by the order of the Adjudicating Authority under this part may prefer an appeal to the National Company Law Appellate Tribunal. The petitioners, therefore, have an efficacious alternate remedy. The proceedings under challenge are under the Insolvency and Bankruptcy Code. When the Code itself provides for an appellate remedy, this Court would not be justified in adjudicating on the sustainability of the order passed by the NCLT in writ proceedings. 11. The learned counsel for the petitioners would urge that constitutionality of Sections 95, 97, 99 and 100 of the Insolvency and Bankruptcy Code is under challenge and therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication for IRP. From a reading of Chapter III, Part III of the IBC, it is obvious that in the matter of initiating an IRP, the role of the Resolution Professional is limited to making appropriate recommendations to the Adjudicating Authority. 14. The Resolution Professional is required to give reasons in support of his recommendations. The Adjudicating Authority is the body which takes final decision in the matter. The Adjudicating Authority is not bound by the recommendation made by the Resolution Professional. In fact, a reading of other provisions in the IBC would make it abundantly clear that in the matter of issuing public notices inviting claims from the creditors and approving or rejecting repayment plan as also in passing Disc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
