Appeal Dismissed due to Duplicate Petition, Emphasizes Compliance with Insolvency Code

The Appellate Tribunal upheld the dismissal of the appeal, emphasizing that the second petition for the same cause of action was not maintainable. The failure to produce the required certificate from the Financial Institution led to the rejection of the initial application under Section 9 of the Insolvency and Bankruptcy Code, underscoring the significance of complying with statutory requirements in insolvency proceedings.

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Issues:
1. Rejection of application under Section 9 of the Insolvency and Bankruptcy Code, 2016 due to non-filing of certificate from Financial Institution.
2. Dismissal of petition for initiation of Corporate Insolvency Resolution Process based on the same cause of action.

Analysis:
1. The Appellant, 'Smart Timing Steel Ltd.' filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against 'National Steel & Agro Industries Ltd.' for the initiation of Corporate Insolvency Resolution Process. The Adjudicating Authority rejected the application on the grounds of non-filing of a certificate from the Financial Institution reflecting non-payment of operational debt, as required by Section 9 of the I&B Code. The Demand Notice was issued by the Appellant on 23rd December, 2016, demanding payment from the Corporate Debtor. However, as the Appellant failed to produce the required certificate, the claim was rejected by the Adjudicating Authority.

2. A subsequent petition under Section 9 was filed by the Appellant after the initial rejection, which was dismissed by the Adjudicating Authority and affirmed by the Hon'ble Supreme Court. The Adjudicating Authority dismissed the second petition citing that it was for the same cause of action and hence not maintainable. Despite giving an opportunity to settle the matter, no progress was made, leading to the dismissal of the appeal by the Appellate Tribunal. The Tribunal concurred with the Adjudicating Authority's decision that the second petition for the same cause of action was not maintainable based on previous judgments.

In conclusion, the Appellate Tribunal upheld the dismissal of the appeal, emphasizing that the second petition for the same cause of action was not maintainable as per the previous decisions of the Adjudicating Authority and the Hon'ble Supreme Court. The failure to produce the required certificate from the Financial Institution led to the rejection of the initial application under Section 9 of the I&B Code, highlighting the importance of complying with statutory requirements in insolvency proceedings.

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