Challenge to Shareholder Collusion in Section 9 Application: Tribunal Issues Directions for Company Operations

The appellant challenges an application under Section 9, alleging collusion among shareholders to frustrate awards. The Tribunal issues notices to respondents, with directions for filing affidavits. An Interim Resolution Professional is appointed to oversee the company's operations, with instructions for cooperation from the suspended Board of Directors. The Committee of Creditors is restrained from making decisions until the next hearing, allowing the company to function smoothly under the Interim Resolution Professional's guidance.

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Issues: Application under Section 9, collusion among shareholders, impugned order, notice upon respondents, interim resolution professional, functioning of the company, Committee of Creditors decision.

Analysis:
1. Application under Section 9: The appellant, along with Respondent No. 2, are the only shareholders of the Corporate Debtor. The application under Section 9 is filed by Respondent No. 3 allegedly in collusion with Respondent No. 1 and 2 to frustrate the awards in favor of the Appellant. The appellant argues that the impugned order cannot be sustained due to this collusion.

2. Notice upon Respondents: The Tribunal issues a notice upon the respondents, with Mr. Rishav Banerjee and Mr. Aishwarya Kr. Awasthi accepting notice on behalf of Respondent No. 1 and 3 respectively. Respondents are directed to file their reply affidavits within two weeks, with the provision for rejoinder within two weeks thereafter. Notice is to be served upon Respondent No. 2, and the appellant is required to provide the mobile numbers/email address of Respondent No. 2 for the same.

3. Interim Resolution Professional: The Interim Resolution Professional is tasked with ensuring the company remains a going concern. They are directed to take assistance from the suspended Board of Directors, with the appellant and Corporate Debtor instructed to cooperate. The Interim Resolution Professional is authorized to oversee the signing of bank cheques, with a requirement for counter-signature for payment release. Bank accounts of the Corporate Debtor are allowed to be operated for day-to-day functions like bill payments, salaries, and wages.

4. Functioning of the Company: The order specifies that the Committee of Creditors will not take any decision until the next date of hearing. This ensures that the company's operations continue smoothly under the guidance of the Interim Resolution Professional without interference from the Committee of Creditors.

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