Tribunal upholds ex-parte order, stresses cooperation with Resolution Professional. Applicant fined Rs. 10,000.

The Tribunal dismissed the Applicant's application to set aside an ex-parte order, emphasizing the duty of the Ex-Management to cooperate with the Resolution Professional. The Tribunal found no violation of natural justice and imposed a cost of Rs. 10,000 on the Applicant for filing the application, payable within 15 days.

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Issues:
1. Setting aside an ex-parte order passed by the Tribunal in IA No. 326/2021.
2. Allegation of violation of principles of natural justice.
3. Compliance with directions to hand over documents to the Resolution Professional.
4. Jurisdiction of the Tribunal to direct local police assistance.
5. Timeliness of filing an appeal against the Tribunal's order.

Issue 1: Setting aside an ex-parte order
The Applicant, a promoter and shareholder of the Corporate Debtor, filed an application seeking to set aside an ex-parte order passed by the Tribunal in IA No. 326/2021. The Applicant argued that the order was passed without notice and violated principles of natural justice. The Respondent, the Resolution Professional, contended that the Applicant was duly served notice through email, and the Tribunal rightly disposed of the application due to the Applicant's non-appearance.

Issue 2: Allegation of violation of principles of natural justice
The Applicant claimed that the order passed ex-parte on 14.07.2021 was a violation of natural justice as he was not given an opportunity to be heard. However, the Resolution Professional argued that the Applicant had failed to cooperate despite assurances given in CoC meetings, leading to the necessity of filing IA No. 326/2021 under Section 19(2) of IBC.

Issue 3: Compliance with directions to hand over documents
The Tribunal considered the duty of the Ex-Management to cooperate with the Resolution Professional in the resolution process. The Resolution Professional had repeatedly requested the Applicant to provide necessary documents, but the Applicant failed to comply. The Tribunal, in accordance with Section 19(1) of IBC, directed the Ex-Management to hand over the required documents to ensure the successful completion of CIRP.

Issue 4: Jurisdiction of the Tribunal to direct local police assistance
The Applicant argued that the Tribunal had no jurisdiction to direct local police assistance to the Resolution Professional. However, the Tribunal found no violation of natural justice in its order and emphasized the mandatory duty of the Ex-Management to cooperate with the Resolution Professional, as per Section 19 of IBC.

Issue 5: Timeliness of filing an appeal against the Tribunal's order
The Resolution Professional contended that the appeal filed by the Applicant on 27.11.2021, against the order dated 14.07.2021, lacked validity as per Section 61(1) of IBC, which requires filing an appeal within one month of the Tribunal's order. The Resolution Professional urged the Tribunal to dismiss the application based on this ground.

In conclusion, the Tribunal dismissed the Applicant's application, emphasizing the duty of the Ex-Management to cooperate with the Resolution Professional for the successful resolution process. The Tribunal found no violation of natural justice in its order and imposed a cost of Rs. 10,000 on the Applicant for filing the application, payable within 15 days.

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