2019 (9) TMI 843

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....ent- 'M/s. Roxcel Trading GMBH'- ('Operational Creditor') filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short) against 'NUI Pulp and Paper Industries Pvt. Ltd.'- ('Corporate Debtor'). 2. The matter was listed before the Adjudicating Authority (National Company Law Tribunal), Single Bench, Chennai, on 25th June, 2019 and counsel for the 'Corporate Debtor' appeared by filing a Caveat. The counsel for the 'Corporate Debtor' submitted that there is an existence of dispute between the parties and thereby prayed for time for filing reply. On the request of the counsel for the 'Corporate Debtor', time was allowed to file reply affidavit and time was also allowed to the 'Operational Creditor' fo....

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....the first day of issuance of notice or allowing the 'Corporate Debtor' to file reply. The Adjudicating Authority has no jurisdiction to pass interim order. 6. Learned counsel appearing on behalf of the Respondent- 'Operational Creditor' while submitted that there was an apprehension that the 'Corporate Debtor' and its Directors are intended to sell the assets of the 'Corporate Debtor' to defeat the purpose of the 'I&B Code' and cause wrongful losses to all the creditors including the 'Operational Creditor' before the Adjudicating Authority. It is always open to the Adjudicating Authority to pass interim order. 7. Before deciding the issue, we asked learned counsel for the Appellant as to whether the 'Corporate Debtor' intends to sell ....

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....eipt of the reply under Section 8(2), informed that the 'Corporate Debtor' has not made payment, filed an application under Section 9. It was at this stage, the 'Operational Creditor' brought to the notice of the Adjudicating Authority (National Company Law Tribunal) that there is an apprehension that the 'Corporate Debtor' may abuse the process of the 'I&B Code' to deny the creditors from its legitimate rights if admission of the application under Section 9. 12. The Appellant having not given any undertaking or made any specific reply and refused to say that they have no such intention, we are of the view that it is always open to the Adjudicating Authority to pass ad-interim order before admitting any application under Sections 7 or 9 ....