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2020 (7) TMI 299
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....ptcy Code, 2016 ("I&B Code" for short) came to be admitted in terms of the impugned order dated 6th December, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, setting in motion 'Corporate Insolvency Resolution Process' against Respondent No. 1- 'M/s. Crown Realtech Private Limited'- ('Corporate Debtor'). 2. Through the medium of instant appeal filed under section 61 of the 'I&B Code', Shri Gopal Krishan Bathla, Ex-Director of the 'Corporate Debtor' seeks to assail the impugned order of admission on various grounds set out in the memo of the Appeal. However, at the hearing of this appeal, the arguments have been restricted to only one ground adumbr....
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....that despite delay of almost 6 ½ years, the aforesaid unit had been completed only to the extent of 80-85% and being satisfied in respect of debt and default it proceeded to pass the impugned order which has been assailed in this Appeal. 4. The only ground pressed at the hearing for setting aside the impugned order is that the Respondent No. 2 had arrived at a Settlement with the 'Corporate Debtor' on 3rd December, 2019 and since the same preceded the date of admission of the application under section 7 vide impugned order dated 6th December, 2019 and constitution of the 'Committee of Creditors' on 3rd January, 2020, in terms of the law laid down by the Hon'ble Apex Court in "Swiss Ribbons Private Limited and Anr....
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....n of a creditor's petition under Sections 7 to 9, the proceeding that is before the Adjudicating Authority, being a collective proceeding, is a proceeding in rem. Being a proceeding in rem, it is necessary that the body which is to oversee the resolution process must be consulted before any individual corporate debtor is allowed to settle its claim. A question arises as to what is to happen before a committee of creditors is constituted (as per the timelines that are specified, a committee of creditors can be appointed at any time within 30 days from the date of appointment of the interim resolution professional). We make it clear that at any stage where the committee of creditors is not yet constituted, a party can approach the NCLT di....
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....equent Amendment in the 'I&B Code' have virtually been dragged from pillar to post. This fact is clearly borne out from the application filed by several allottees seeking intervention through I.A. No. 425 of 2020. It emerges that during the hearing of CP(IB) No. 1565 (PB)/2018 i.e., the application filed by Respondent No. 2 against the 'Corporate Debtor' under section 7 of the 'I&B Code' and until the pronouncement of the impugned order, neither of the parties approached the Adjudicating Authority to lay intimation about Settlement of the claim of the Respondent No. 2 and seek exit from 'Corporate Insolvency Resolution Process' by allowing Settlement inter se the parties. There is not even a whisper in the me....
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....ed 3rd December, 2018 with direction to file claim in the 'Corporate Insolvency Resolution Process' set in motion by Sh. Puneet Kumar Jindal through CP No. (IB)-769(PB)/2018. However, such order came to be set aside by this Appellate Tribunal in terms of the order dated 7th March, 2019 in Company Appeal (AT) (Insolvency) No. 797 of 2018. As already stated, none of the parties reported any development in regard to Settlement of claim of Respondent No. 2 before the Adjudicating Authority prior to passing of the impugned order or even thereafter until constitution of the 'Committee of Creditors' on 3rdJanuary, 2020. It further appears from I.A. No. 425 of 2020 filed by the Intervenors that as many as seven matters including the....