Appellate Tribunal orders prompt resolution of Section 7 application under I&B Code

The Appellate Tribunal directed the Adjudicating Authority to expedite the disposal of the Section 7 application under the I&B Code within two weeks. Failure to comply would lead to the Appellate Tribunal's intervention, emphasizing the importance of adhering to procedural rules and timelines to achieve the objectives of the Corporate Insolvency Resolution Process. The appeal was disposed of with instructions to ensure timely resolution of the matter before the Adjudicating Authority.

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Issues: Delay in disposal of application under Section 7 of the I&B Code before the Adjudicating Authority.

Analysis:
1. The Appellant's counsel highlighted that the application under Section 7 of the I&B Code was pending before the Adjudicating Authority since 1st March, 2018, and the matter had been adjourned multiple times.
2. The impugned order revealed that both parties were represented before the Adjudicating Authority, and the matter was adjourned at the request of the Respondent-Corporate Debtor's counsel.
3. The judgment expressed concern over the limited enquiry being prolonged into a full-fledged trial during the pre-admission stage. It emphasized that the Corporate Insolvency Resolution Process is not a recovery proceeding, and strict adherence to procedural rules and timelines under the I&B Code is essential to achieve the code's objectives.
4. The Appellate Tribunal, after hearing the Appellant's counsel, decided to dispose of the appeal promptly by directing the Adjudicating Authority to expedite the disposal of the Section 7 application and pass an appropriate order within two weeks. Failure to comply would result in the Appellate Tribunal intervening.
5. The order instructed the Appellant's counsel to provide a copy of the directive to the Adjudicating Authority for necessary action.
6. The appeal was ultimately disposed of with the aforementioned observations and directions to ensure timely resolution of the matter before the Adjudicating Authority.

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