2023 (8) TMI 664 - SCH - Insolvency and Bankruptcy

Supreme Court Grants Appellant Relief, Orders Liquidator Stay

Arun Agarwal Versus Ram Ratan Kanoongo And Anr

The Supreme Court granted the appellant liberty to approach the NCLAT, Chennai for relief and ordered that the Liquidator refrain from taking any adverse ... Challenge to order reserving judgment - NCLAT, Chennai is on vacation presently and that the Liquidator is proceeding with the process of liquidation, disabling the appellant from approaching the NCLAT, Chennai - HELD THAT:- It is informed that after summer vacation, the NCLAT, Chennai reopens on 5th June, 2023. In such view of the matter, we grant liberty to the appellant to approach the NCLAT, Chennai on 5th June 2023 and seek such relief as may be available to him in law. It is expected that till 5th June, 2023, the Liquidator shall not take any action adverse to the interest of the appellant. Civil appeal dismissed. Issues involved:The issues involved in the judgment include the appointment of a Liquidator by the National Company Law Tribunal, the appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016, the challenge to the order reserving judgment by the National Company Law Appellate Tribunal, and the request for status quo till the appeal judgment is rendered.Appointment of Liquidator:The National Company Law Tribunal, Hyderabad appointed the Respondent No. 2 as the Liquidator of the subject company by an order dated 18 April, 2023.Appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016:An appeal was carried by the appellant before the National Company Law Appellate Tribunal, Chennai from the order dated 18 April, 2023. The NCLAT, Chennai heard the parties in full on 26 April, 2023, and reserved the judgment on the appeal.Challenge to the order reserving judgment:The appellant approached the Supreme Court challenging the order reserving judgment by the NCLAT, Chennai, claiming that the NCLAT, Chennai is presently on vacation and the Liquidator is proceeding with the process of liquidation, preventing the appellant from approaching the NCLAT, Chennai.Request for status quo:Ms. Meenakshi Arora, learned senior counsel for the appellant, requested an order of status quo until the judgment on the appeal is rendered by the NCLAT, Chennai. It was argued that the appeal would be rendered infructuous if the Liquidator acts adverse to the appellant's interest.Judgment and Relief:The Supreme Court granted liberty to the appellant to approach the NCLAT, Chennai on 5th June 2023 and seek relief available in law. It was ordered that until 5th June, 2023, the Liquidator shall not take any action adverse to the appellant's interest. The Civil Appeal was dismissed on the terms mentioned, and pending applications were disposed of accordingly.