2024 (6) TMI 1503 - AT - IBC

Appeal dismissed for abuse of process and counsel misconduct after concealing pending writ and pursuing dual remedies

NCLAT CHENNAI dismissed the appeal. The court found the appellant sought two simultaneous remedies for the same cause of action and failed to disclose a ... Admission of section 9 application - initiation of CIRP proceedings as against the Corporate Debtor - HELD THAT:- An Appellant cannot be permitted to resort to two simultaneous remedies, for the same cause of action as the same would be an abuse of the process of law, and that too based upon the concealment of fact by not disclosing to this Tribunal, that a Writ Petition for the same cause has already been preferred and the same is pending. This act itself disentitles the Appellant from any intervention/interference to be made by this Tribunal in this Appeal. The Appeal is accordingly, dismissed on account of the misconduct on part of the Counsel. The appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 challenged the order dated 4 June 2024 in CP(IB) No. 69/9/HDB/2023 admitting a Section 9 application and initiating CIRP. During hearing, counsel for the Operational Creditor notified the Tribunal that the Appellant had filed Writ Petition No. 15859/2024 challenging the same impugned order-a fact not disclosed by the Appellant's counsel. The Tribunal held that concealment and pursuit of parallel remedies constituted an abuse of process: 'An Appellant cannot be permitted to resort to two simultaneous remedies, for the same cause of action as the same would be an abuse of the process of law,' and that such conduct 'disentitles the Appellant from any intervention/interference' by the Tribunal. On that basis, the appeal was dismissed on account of misconduct by counsel rather than on the merits of the Section 9 admission.