2026 (3) TMI 208

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....r Sharma, Member (Judicial)] The instant Company Appeal, that has been preferred by the Appellant, who is an Operational Creditor to the Respondent No. 1 Company. The Respondent No. 1 Company had been the petitioner in CP(IB) No. 93/BB/2024, being the proceedings being carried before the Learned NCLT, Bengaluru, filing the said petition under Section 10 of I&B Code, which was to be read with Rule 7 of IBC (AAA) Rules, 2016. Consequent to filing of the said petition on 22.02.2024, CIRP process stood initiated against M/s. Bremels Rubber Industries Pvt Ltd. In the said petition, Respondent No. 1 Company had sought initiation of CIRP under Section 10 of I&B Code on account of its inability to meet the repayment obligations of a total debt d....

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....t to be paid to him, has been disposing off its assets and siphoning its funds, on one pretext or the other, that because of the above he has instituted a Commercial Suit No. 237/2023, as against the Respondent, before the Court of District & Sessions Judge, Bangalore (Commercial Court No. 86), for seeking a direction for the remittance of a sum of Rs. 8,04,59,495, which has been decreed on 15.09.2025 and that after the passing of the said decree of 15.09.2025, the proceedings under Section 10 of the Code, has been drawn by the Respondent, for reasons other than insolvency, presumably to escape complying with the decree passed by the Learned District Judge. He has contended that admission of the Section 10 petition and commencement of CIRP ....

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....and therefore he becomes a necessary party, because he can defend the CD effectively. 4) If the Appeal is proceeded with, without hearing him, he and other shareholders will be left remediless. 5. The said application is being opposed by the Respondent by filing an objection contending thereof that, he denies the contentions made in the impleadment application, that though the Applicant is a former director of the Corporate Debtor, he is no longer involved in the management of the affairs of the CD and that the RP has taken over the management of the CD consequent to the admission of section 10 application filed by the CD, that the RP is fully competent to represent the CD in any litigation including this instant Appeal and he i....

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....d under Order 1 Rule 10 of the CPC, it prescribes for that a party seeking impleadment in a lis, will have to establish that, the lis cannot be effectively decided in his or her absence. It is seen that none of the grounds taken in the application for impleadment satisfy the said parameters, nor attempt to establish that the instant Company Appeal cannot be effectively decided in the absence of the applicant being made as a party to the proceedings. Apart from it, the grounds agitated by the applicant have not been substantiated by the supporting documents filed there to, more particularly in respect of the status of the Appellant and the necessity of his presence in an appeal being carried on the issue of commencement of CIRP under Section....