Tribunal dismisses IBC Petition against Rolta India for relying on invalidated RBI Circular

The Tribunal dismissed the Petition under Section 7 of IBC against Rolta India Limited, as it relied on the invalidated RBI Circular. Following the Supreme Court's order in Writ Petition No.237/2019, the Tribunal ruled the petition as not maintainable. The judgment stressed compliance with the IBC legal framework and allowed for a fresh petition based on current developments.

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Issues:
1. Initiation of CIRP under Section 7 of IBC against Rolta India Limited based on RBI Circular dated 12.2.2018.
2. Challenge before the Hon'ble Supreme Court in Writ Petition No.237/2019.
3. Order passed by the Hon'ble Supreme Court in Writ petition 237/2019 on 12.4.2019.

Analysis:

1. The Petitioner filed a Petition under Section 7 of IBC, 2016 seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Rolta India Limited for the realization of a due amount. The Corporate Debtor's Counsel argued that the petition was based on an RBI circular dated 12.2.2018, which was under challenge before the Hon'ble Supreme Court in Writ Petition No.237/2019. The minutes of a consortium meeting held on 5.2.2019 revealed concerns over the company's non-participation and failure to address critical issues, leading to lenders not issuing NOC for disinvestment. Various banks confirmed actions taken, including filing DRT suits and applications with NCLT. The Lead Bank filed an application with NCLT on 10.9.2018, which was deferred for further hearing.

2. The Corporate Debtor's Counsel highlighted an order by the Hon'ble Supreme Court in Writ petition 237/2019 on 12.4.2019. The Court clarified that the order of status quo had ended and that the RBI Circular had been struck down. The Court directed that proceedings based on the Circular in NCLT must come to an end. Consequently, the Petition based on the RBI Circular dated 12.2.2018 was deemed not maintainable in light of the Supreme Court's order.

3. In the final order, the Tribunal dismissed the Petition filed by Union Bank of India under Section 7 of IBC, 2016, as it was based on the now-invalidated RBI Circular dated 12.2.2018. The Tribunal granted liberty to file a fresh petition considering the developments following the Hon'ble Supreme Court's decision. The judgment emphasized the impact of the Supreme Court's ruling on the maintainability of the petition and the necessity for compliance with the legal framework under the IBC.

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