TaxTMI 
TaxTMI 
2020 (2) TMI 639
X X X X Extracts X X X X
X X X X Extracts X X X X
....vency and Bankruptcy Code, 2016 was initiated before the National Company Law Tribunal, Kolkata in respect of the defendant no.9. In such proceedings, the defendant no.5 was appointed as the Insolvency Resolution Professional. The defendant no.6 is the insolvency professional entity of which the defendant nos.7 and 8 are the partners. She submits that, in view of the provisions of Sections 63 and 231 of the Code, 2016, the suit is not maintainable. She points out that the plaintiff was never present when the application was taken up for consideration on previous dates. She also points out that, an appeal carried from an order refusing to grant interim relief to the plaintiff was dismissed for default on January 6, 2020. There are nine def....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ainst it under Section 7 of the Code, 2016. In such proceeding, the defendant no.5 was appointed as the Insolvency Professional. The Insolvency Professional took steps under the Code of 2016. The plaintiff, again as noted above, claims to be a principal shareholder and the director of the defendant no.9 which was facing the insolvency proceeding. The suit was filed subsequent to the commencement of the insolvency proceeding and after the appointment of the insolvency professional. Learned advocate appearing for the defendant nos.5 to 8 submits that, the National Company Law Tribunal, Kolkata passed an order for winding up of the defendant no.9 subsequently. The insolvency professional and on the passing of the order of winding up, the Liq....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Law Tribunal. The defendant no.9 was facing such insolvency proceeding at the time when the suit was filed. The parties to the suit are bound by the orders passed by the National Company Law Tribunal in the proceedings before the National Company Law Tribunal. The proceeding or the orders passed in such proceedings cannot be called into question by filing a separate suit in view of Section 63 of the Code of 2016. The Code of 2016 deals not only with corporate entities but also with individuals. Therefore, Section 231 of the Code of 2016 takes into account a situation where the proceeding may be pending under the Code of 2016 against an individual also. Section 231 of the Code of 2016 is in Part-5 dealing with miscellaneous matters. Sectio....