Court Notice via Speed Post for Insolvency Case; Stay on NCLT Proceedings; Urgent Certified Copy Granted

The court issued notice to the opposite parties through Speed Post, returnable within three weeks for expedited disposal at the admission stage. Proceedings under Section 10 of the Insolvency and Bankruptcy Code were confirmed, with a stay on ongoing proceedings before the National Company Law Tribunal, Kolkata Bench related to the petitioner's case. The court granted an urgent certified copy of the order to protect the petitioner's rights during the legal process.

---

---

Issues involved: Petition challenging non-resolution of debt under Insolvency and Bankruptcy Code due to loan amount below Rs. 5,000 crores.

Analysis:
The petitioner, a company under the Companies Act, claimed to have obtained a loan from a bank consortium, but the amount was less than Rs. 5,000 crores. The Reserve Bank of India's guideline under Annexure-2 outlined criteria for referring accounts for resolution under the Insolvency and Bankruptcy Code (IBC). The Internal Advisory Committee (IAC) recommended IBC reference for accounts with outstanding amounts greater than Rs. 5,000 crores, with a significant portion classified as non-performing. For accounts below this threshold, the IAC suggested finalizing a resolution plan within six months. The petitioner contended that despite its debt falling below Rs. 5,000 crores and making representations, no resolution was reached by the bank.

The court acknowledged the arguable case in favor of the petitioner, noting the risk of the petitioner's unit being taken over under the IBC provisions if interim protection was not granted. It was confirmed that proceedings had been initiated under Section 10 of the IBC. Consequently, the court decided to issue notice to the opposite parties through Speed Post, returnable within three weeks for expedited disposal at the admission stage. The parties were directed to file postal requisites promptly.

The court scheduled the matter for further proceedings on a specific date and directed a stay on the ongoing proceedings before the National Company Law Tribunal, Kolkata Bench related to the petitioner's case. Additionally, the court granted an urgent certified copy of the order upon proper application, ensuring the petitioner's rights were protected during the legal process.

---