Tribunal Upholds IBC Application Dismissal, Denies Stay on Liquidation Proceedings Due to Time-Barred Appeal.

The Tribunal dismissed the appeal against the admission of the application under Section 7 of the IBC, as it was time-barred and not maintainable due to a prior related dismissal. In a separate appeal against the liquidation order, the Tribunal refused to stay the liquidation proceedings, emphasizing the time-sensitive nature of the IBC process. The appeal was scheduled for an 'Admission (After Notice) Hearing,' where potential relief would be considered if the Appellant succeeded.

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Issues involved:
1. Appeal against order of admission of Application under Section 7 of the Insolvency and Bankruptcy Code, 2016.
2. Appeal against order of liquidation passed in regard to the same Corporate Debtor.

Analysis:

Issue 1: Appeal against order of admission of Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (Company Appeal (AT) (Insolvency) No.525 of 2021):
The Appellant, claiming to be the Promoter/ Shareholder of the Corporate Debtor, filed an appeal against the order of admission of the application under Section 7 of the IBC against the Corporate Debtor. The appeal was filed against the impugned order dated 20.09.2019. The Tribunal noted that the appeal was time-barred as the period for filing an appeal under Section 61(2) of the IBC had expired. Additionally, the ground raised regarding the debt being time-barred was dismissed as the impugned order itself was not time-barred. The Tribunal also highlighted a previous appeal by another individual related to the same impugned order, which was dismissed, making the present appeal by the Shareholder not maintainable. Consequently, the Tribunal declined to admit the appeal.

Issue 2: Appeal against order of liquidation passed in regard to the same Corporate Debtor (Company Appeal (AT) (Insolvency) No.526 of 2021):
In this appeal, the Appellant sought a stay on the steps being taken by the Liquidator who had issued a notice for e-auction. The Tribunal, considering the impugned order, the record, and the time-bound procedure under the IBC, decided not to grant a stay on the liquidation proceeding. The Tribunal scheduled the appeal for an 'Admission (After Notice) Hearing' on 16th September 2021, indicating that if the Appellant succeeds, relief would be determined by the Tribunal at that stage.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved, the arguments presented, and the decisions made by the National Company Law Appellate Tribunal, Principal Bench, New Delhi.

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