Appellate Tribunal Allows Delayed Appeal in Insolvency Case; Corporate Debtor's Appeal Not Maintainable

The Appellate Tribunal condoned a 3-day delay in appealing the order admitting an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, by the Operational Creditor against the Corporate Debtor. The Tribunal found the appeal by the Corporate Debtor not maintainable due to the appointment of an insolvency professional, following the precedent set in "Innoventive Industries Limited" by the Supreme Court. Despite the Corporate Debtor's willingness to settle, the Tribunal clarified that the impugned order could not be set aside, allowing other parties to seek relief before the Committee of Creditors under Section 12 A of the I&B Code.

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Issues:
1. Condonation of delay in preferring appeal
2. Admission of application under Section 9 of the Insolvency and Bankruptcy Code, 2016
3. Dispute regarding outstanding payment between Operational Creditor and Corporate Debtor
4. Existence of debt payable by the Corporate Debtor
5. Maintainability of appeal by Corporate Debtor
6. Possibility of settlement between parties

1. Condonation of Delay:
The Appellate Tribunal, after hearing the counsel for the Appellant, condoned the delay of 3 days in preferring the appeal based on satisfactory grounds, thereby disposing of I.A. No. 133 of 2019.

2. Admission of Application under Section 9 of I&B Code:
The appeal was filed by the Corporate Debtor against the order admitting the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, by the Operational Creditor. The order included the appointment of an Interim Resolution Professional and the declaration of a moratorium.

3. Dispute Regarding Outstanding Payment:
The dispute arose from the outstanding payment of &8377; 37,72,430/- by the Corporate Debtor to the Operational Creditor for the supply of goods. The Operational Creditor claimed that the last payment was made within the stipulated time, while the Corporate Debtor sought to adjust VAT amounting to &8377; 18,01,726/-.

4. Existence of Debt Payable:
The Adjudicating Authority admitted the application under Section 9 of the I&B Code, as it found a debt payable by the Corporate Debtor exceeding &8377; 1,00,000/- without any existence of dispute.

5. Maintainability of Appeal:
The Appellate Tribunal noted that the appeal by the Corporate Debtor was not maintainable as per the decision in "Innoventive Industries Limited" by the Supreme Court, emphasizing that once an insolvency professional is appointed, erstwhile directors cannot maintain an appeal on behalf of the company.

6. Possibility of Settlement:
Although the Appellant expressed readiness to settle with the Operational Creditor, the Tribunal clarified that the impugned order cannot be set aside to provide relief to the Corporate Debtor. However, it allowed other parties to move applications before the Committee of Creditors for appropriate relief under Section 12 A of the I&B Code.

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