TaxTMI 
TaxTMI 
TaxTMI 
2024 (2) TMI 1027
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.... a 'Secured Financial Creditor' and 'Debenture Holder' of JBM Homes Private Limited (Corporate Debtor). In fact, the Petitioner/3rd party is a Financial Creditor in IBA/812/2020, in which an 'order' was passed by the 'Adjudicating Authority'/National Company Law Tribunal on, 07.09.2021 admitting the Corporate Debtor into Corporate Insolvency Resolution Process. 3. It is represented on behalf of the Petitioner/proposed 3rd Respondent that the Liquidation order was passed on 12.09.2023 in IA/IBC/919/CHE/2022 and IA/IBC/972/CHE/2022, based on the action plan submitted by the Petitioner herein. In fact, the Petitioner is a necessary and proper party to the instant Appeal. 4. The Learned Sr. Counsel for the Petitioner/proposed 3rd Respondent points out that in the CIRP process, the Petitioners' claim was 'admitted' by the 'Resolution Professional' as Secured Financial Creditor with the Petitioner holding 90.05% of the voting share, in the 'Committee of Creditors'. Indeed, the Reliance Home Finance Ltd. had 5.92% voting share, in the Committee of Creditors and the balance 4.03% voting share was held by the Homebuyers' Group. 5. It is the version of the petitioner, in IA 57 of 2024, in....
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....the fact numerous grounds are raised, pertaining to the Petitioner, therefore, according to the Petitioner, he is a 'necessary' and 'proper party' in the instant 'Appeal' and hence, the 'impleadment' is sought for by him, before this Tribunal. Pleas of 1st Respondent / Appellant 12. According to the Learned Counsel for the 1st Respondent/Appellant, that only a person 'Aggrieved', and a person whose right is affected in 'Law', must be made a 'necessary and proper party'. Moreover, an 'order of Liquidation' is assailed, which is against the ''interests', of the 'Corporate Debtor' only is an 'Order' in 'rem' operating against the Corporate Debtor and its interests. 13. The Learned Counsel for the 1st Respondent/Appellant points out that the interests of the 'Creditors' and Stakeholders are at large, duly represented by the Liquidator /2nd Respondent and the 'Resolution Professional' who had applied for 'Liquidation' is duly arrayed as 1st Respondent in the instant 'Appeal'. 14. According to the Learned Counsel for the 1st Respondent/Appellant, before the 'Adjudicating Authority/Tribunal', the Petitioner / 3rd party / the Creditor viz. 'LICHFL' had not taken steps to 'implead' itse....
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....ion in the I&B Code, 2016, that enables the 'Creditors' other than those who triggered the 'Insolvency Resolution Process', to be impleaded as 'Parties'. In law, the 'Impleadment of Parties', is ultimately, within the ambit of exercise of discretion by a 'Tribunal' / 'Authority', as the case may be. More importantly, no person, can be added, unless he is a necessary party. A necessary party means that a person is very much necessary to the Constitution of Suit/an Appeal in a given Proceeding before a Court of Law / Tribunal / Authority. In fact, whether a person has an enforceable legal right is to be looked into by a Tribunal in regard to the impleadment of parties. To array a person as a prospective / proposed Respondent(s) is not a Substantive Right, but undoubtedly, it is one of the procedure and the Tribunal is to exercise its judicial discretion, of course, in a subjective manner, diligently. 30. It cannot be gainsaid that, in Individual will not be added as a Party, just because he will be affected by the Tribunal incidentally, when it passes an Order in a given proceedings, before it. 31. An Appellant/Plaintiff in a given legal proceeding is the dominus litis. He cannot....
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.... of Order 1 of CPC is generally not one of 'initial jurisdiction', of the 'Court' but of a 'judicial discretion', which has to be exercised in view of all facts and circumstances of a particular case; but in some cases it may raise controversies as to the power of the Court in contra distinction to its inherent jurisdiction or in other words of jurisdiction in the limited sense in which it is used in Section 115 of the Civil Procedure Code. 24. In the decision of Hon'ble Supreme Court in Mumbai International Airport Pvt. Ltd. V. Regency Convention Centre & Hotels Pvt. Ltd., reported in AIR 2010 SC 3109 wherein it is observed and held that 'a necessary party' is a 'person' who ought to have been joined as a 'party' and in 'whose absence' no effective Decree could be passed at all, by the 'Court'. If a 'necessary party' is not impleaded, the suit itself is liable to be dismissed. A 'proper party' is a party, who though not a necessary party is a person whose presence would enable the Court to completely, effectively and adequately adjudicate upon all matters in dispute in the suit, though he need not a person in favour of or against whom the decree is to be made, as per decision in ....
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....the clear-cut stand taken by the 1st Respondent /Appellant, is that the Petitioner/proposed 3rd Respondent, is a Creditor to the 'Corporate Debtor' has no 'Locus standi', to assail the order of Liquidation passed by the 'Adjudicating Authority/Tribunal' and cannot be arrayed as one of the 'parties' in the instant Appeal, since the Petitioner, is neither a necessary party nor a proper party. 31. According to the 1st Respondent/Appellant, the Court/Tribunal in exercise of its powers to array a 'party', shall not implead 'any person' against the 'principle of Dominus Litus' unless the proceedings cannot proceed any further, in the absence of such person or it is impossible, to do 'complete justice' in the absence of such person. 32. It is to be remembered that only an 'individual' who is 'Aggrieved' and whose Right is affected under Law, must be made necessary and proper party to the proceedings, as opined by this Tribunal. 33. Admittedly, the Petitioner/Proposed 3rd Respondent is just a 'Creditor' and being a part of the 'Stakeholders Consultative Committee'. More importantly, the 'Special Committee' formed by the 'Adjudicating Authority/Tribunal', is to make certain 'Recommendati....