TaxTMI 
TaxTMI 
2025 (9) TMI 410
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.... 30.04.2013 has been admitted and Mr. Gyaneshwar Sahai was appointed as the Interim Resolution Professional (IRP). 2. Notice in the appeal was issued on 29.02.2024 and at that time the following order was passed by this court:- "29.02.2024: Learned Counsel for the Appellant submits that the Appellant is ready to deposit the principal amount of Rs. 57,29,675/-. It is submitted that there was no material before the Adjudicating Authority to prove that there was any financial debt owed by the Corporate Debtor hence the Application under Section 7 ought not to have been admitted. It is submitted that financial statement relied as on 31st March, 2016 was only an audited financial statement. Appellant seeks time to file the balance sheet as on 31st March, 2016 and balance sheets thereafter as was directed by the Adjudicating Authority by its order dated 03.10.2023. 2. Let the Appellant deposit the aforesaid amount in the fixed deposit receipt drawn in the name of 'Registrar, NCLAT, New Delhi' within two weeks from today. Appellant shall also bring all relevant balance sheets as indicated above within three weeks. 3. Issue notice to the Respondents through Sp....
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....ication to pursue the appeal through the suspended director of the CD were noticed. The order dated 07.07.2025 is also reproduced as under:- "This appeal is directed against the order dated 13.02.2024 by which application filed under Section 7 by the Respondent has been admitted. The appeal has been filed by the Company (CD) itself and not through the Suspended Director of the CD. Counsel for the appellant prays for an adjournment to file an appropriate application to pursue this appeal by the Suspended Director of the CD. On his request, adjourned to 18.07.2025." 6. The Appellant has filed an application bearing I.A No. 4056 of 2025 dated 14.07.2025 in which prayer has been made for amendment of the appeal and memo of parties, admitting that the appeal was inadvertently filed on behalf of the Appellant - Company / CD but it has been wrongly averred that a direction was issued by this Court on 07.07.2025 to amend the appeal and memo of parties rather the application has been filed for amendment of the appeal to the effect that it may be considered to have been filed by the CD through suspended director and the memo of parties was sought to be amended a....
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....nnected with the order of this court dated 16.10.2024, mentioned it in the presence of the Counsel for the appellant and requested to allow him to file an application for recall of the order dated 21.07.2025. 3. Notice in the application. 4. Counsel for the appellant accepts notice in court and has submitted that the order dated 21.07.2025 may be recalled and the appeal may be heard and decided on merits again. 5. Counsel for the Respondent is regularly appearing in this court. We have not noticed any such mistake committed by him in the past and that he regrets profusely for the inadvertent mistake committed and has also tendered his unconditional apology, therefore, keeping in view the facts and circumstances of this case, we allow this application and consequently recall the order dated 21.07.2025 which is still in the form of a draft order, having not been signed or uploaded on the website of this court and direct the hearing of main appeal afresh for the purpose of its adjudication. 6. CA (AT) (Ins) No. 444 of 2024- List this appeal for fresh hearing on 18.08.2025." 10. The main appeal was reheard on 18.08.2025 and the order was reserved.....
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....cision of the Hon'ble Supreme Court in Innoventive Industries Vs. ICICI Bank Ltd. - 2017(11) SCALE 4, an application for substitution has been filed by the aggrieved person Mr. T. Vinayak Ravi Reddy shareholder and Director of the Corporate Debtor with prayer to substitute him (Mr. T. Vinayak Ravi Reddy) as the Appellant and to transpose the Corporate Debtor -Deccan Chronicle Holdings Ltd through Interim Resolution Professional as 2nd Respondent. 2. Having heard learned Counsel for the Appellant and learned counsel for the Respondent, the application for substitution is allowed. Let Mr. T. Vinayak Ravi Reddy be substituted as Appellant. The Corporate Debtor "Deccan Chronicle Holdings Limited" through Internal Resolution Professional be transposed as 2nd Respondent. I.A. No. 783 of 2017 stands disposed of." 13. She has further submitted that in the case of Innoventive Industries Ltd. Vs. ICICI Bank (2018) 1 SCC 407 the Hon'ble Supreme court had held that the appeal on behalf of the Company is not maintainable but the said case was not dismissed on that score. 14. On the other hand, Counsel appearing on behalf of the Respondent, while contesting, both the appeal and th....
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.... appeal per se is not maintainable. 7. In view of the aforesaid facts and circumstances, we are of the considered opinion that admittedly the appeal has been filed by the CD through its director on the basis of the board resolution dated 01.12.2023 and in view of the decision rendered in the case of Innoventive Industries Ltd. (Supra) the appeal at the instance of the CD against the order of admission passed under Section 7 of the Code is not maintainable. 8. Thus, the present appeal is hereby dismissed. No costs." 15. Counsel for Respondent has also submitted that the word used in Section 61 is not only person but also the 'aggrieved person'. It is submitted that the CD being a company may be a person as defined in Section 3(23) but the appeal can be maintained only by a person who is aggrieved. It is submitted that once the application under Section 7 is admitted, IRP is appointed and board of director of the CD is suspended. The CD itself, on its own, cannot challenge the order of the admission because the control of the CD vests with the IRP as soon as the order is passed admitting the application under Section 7 or 9 of the Code. It is also submitted that ....