Appeal dismissed due to lack of jurisdiction, investor's challenge rejected under I&B Code

The appeal was dismissed as the Adjudicating Authority lacked jurisdiction to recall the order under Section 9 of the I&B Code. The Appellant's claim of fraudulent initiation of Corporate Insolvency Resolution Process was rejected, and their status as an investor did not entitle them to challenge the order. The Appellate Tribunal upheld the decision, stating any challenge to the admission order would be time-barred. The Appellant was advised to file a claim before the Insolvency Resolution Professional, and the Adjudicating Authority's orders were affirmed.

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Issues:
1. Jurisdiction of Adjudicating Authority to recall order under Section 9 of I&B Code.
2. Allegation of fraudulent initiation of Corporate Insolvency Resolution Process.
3. Appellant's standing as an investor to challenge the order.

Analysis:
1. The Appellant, claiming to be an investor of a company, filed an intervention petition before the Adjudicating Authority alleging the fraudulent initiation of Corporate Insolvency Resolution Process against the company. The Adjudicating Authority rejected the prayer to recall the order admitting the application under Section 9 of the I&B Code, stating it lacked the power to do so.

2. The Appellant contended that the Operational Creditor filed the Company Petition fraudulently in collusion with the Directors, leading to the initiation of Corporate Insolvency Resolution Process. The Appellant argued that the Operational Creditor should be punished under Section 65 of the I&B Code for not disclosing relevant facts to the Adjudicating Authority, rendering the petition non-maintainable.

3. The Appellant, being an investor, was deemed ineligible to challenge the order admitting the application under Section 9 of the I&B Code. The Appellant's status as an investor entitled them to file a claim before the Insolvency Resolution Professional, rather than appealing the Adjudicating Authority's decision.

4. The Appellate Tribunal clarified that since the order dated 2nd May, 2017, admitting the application, was not challenged in the appeal, they could not comment on its validity. Any challenge to this order would be time-barred under Section 61 of the I&B Code. The Tribunal upheld the Adjudicating Authority's decision not to recall the admission order due to the absence of a review or recall power.

5. Consequently, the appeal was dismissed due to the lack of merit. However, the Appellant was permitted to file a claim before the Insolvency Resolution Professional, notwithstanding the dismissal of the appeal. The orders of the Adjudicating Authority were affirmed, and the Appellant's challenge was deemed unsustainable.

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