Interim protection in insolvency proceedings continued after recall of DRT order, with NCLAT directed to decide appeal on updated record.

Interim protection in a corporate insolvency resolution process was continued after the ex parte DRT order had been recalled and the recovery certificate closed, developments not placed before the Tribunal below. The SC directed the NCLAT to hear and dispose of the appeal afresh in accordance with law, after allowing both sides to place the updated facts and additional documents on record. No view was expressed on the merits, and the matter was to be decided on the revised record.

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Issues: Whether the interim stay on the corporate insolvency resolution process should be continued in view of the subsequent setting aside of the ex parte DRT order and closure of the recovery certificate, and whether the NCLAT should be directed to dispose of the appeal in accordance with law.

Analysis: The order records that the ex parte DRT order dated 12.04.2022 had been recalled and the recovery certificate had been closed, a fact not placed before the Tribunal below. In light of this subsequent development, the interim protection already granted was continued and the NCLAT was directed to hear and dispose of the appeal after permitting both sides to place the updated facts and additional documents on record. The order expressly states that no opinion was expressed on the merits.

Conclusion: The interim arrangement was continued and the appeal before the NCLAT was to be decided afresh on the basis of the updated record.

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