SLPs dismissed; matter remanded for fresh IBC consideration after BIFR proceedings; no merit ruling; Article 227 noted

SC dismissed the SLPs and declined interference with the HC order remanding the matter to the NCLT for fresh consideration after taking into account the BIFR proceedings. The Court noted it would not express on merits, observed that the HC ideally should not have entertained a revision under Article 227 against the NCLT order when statutory remedies under the IBC were available, but, given four years of pending proceedings and the HC's direction to consider BIFR's order, left the remand undisturbed. The application for intervention was disposed of.

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The Special Leave Petitions challenge High Court orders dated 17.02.2022 and 24.06.2022 in CRP No.210/2020, arising from NCLT, Amravati Bench order dated 12.12.2019 in TCP(IB) No.62/7/AMR/2019 (CP(IB) No.415/7/HDB/2018), whereby an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Stressed Assets Stabilization Fund was allowed. The corporate debtor invoked Article 227 of the Constitution instead of the statutory remedy under the Code. The Court observed that the High Court "should not have entertained the revision application under Article 227" against an NCLT order, but, given four years' pendency and the High Court's finding that the NCLT "had not taken into consideration the proceedings of BIFR," declined interference. The SLPs were dismissed without expressing opinion on merits. The Court directed that "The NCLT shall hear the matter afresh and pass the orders in accordance with law, as expeditiously as possible," vacated the interim stay, and held that the parties "shall be at liberty to raise all the contentions before the NCLT, as may be legally permissible."

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