Insolvency-related abatement under Rule 22 bars continuation of a CESTAT appeal without a timely successor application.

Rule 22 of the CESTAT (Procedure) Rules, 1982 provides that an appeal abates when a party undergoes insolvency resolution or, in the case of a company, winding up, unless an application for continuance is made by or against the successor-in-interest within the prescribed time, extendable for sufficient cause. The article states that once a resolution plan is approved and a successor-in-interest comes into place, continuation of the appeal depends on a proper continuance application. Where no such application is filed by the successor-in-interest or the insolvency resolution professional, the appeal abates by operation of rule and the Tribunal cannot proceed further.

---

---

Issues: Whether the appeals abated under Rule 22 of the CESTAT (Procedure) Rules, 1982 after initiation and approval of the insolvency resolution process, and whether the Tribunal could continue the proceedings in the absence of any application by the successor-in-interest.

Analysis: Rule 22 provides that where a party to the appeal is adjudicated insolvent, or in the case of a company is being wound up, the appeal abates unless an application for continuance is made by or against the successor-in-interest within the prescribed time, extendable for sufficient cause. The Tribunal followed the consistent view taken in earlier decisions that, once the resolution plan is approved and the successor-in-interest is in place, continuation of the appeal depends on a proper application for continuance. In the present case, no such application was filed by the successor-in-interest or IRP for continuation of the proceedings.

Conclusion: The appeals abated by operation of Rule 22, and the Tribunal could not proceed further in the matters.

Final Conclusion: The proceedings came to an end on account of statutory abatement arising from the insolvency resolution process, leaving no surviving appeal before the Tribunal.

Ratio Decidendi: Where a company in appeal undergoes insolvency resolution and no timely application is made by the successor-in-interest for continuation, the appeal abates under Rule 22 of the CESTAT (Procedure) Rules, 1982 and the Tribunal becomes functus officio.

---