2026 (4) TMI 159

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....BC) / 823 (CHE) / 2022 in CP (IB) / 28 (CHE) / 2022, which was drawn before the Ld. National Company Law Tribunal, Chennai - Bench II. 2. At present stage, the limited grievance of the Appellant as canvassed before this Appellate Tribunal is, as against the Impugned Order that has been passed on the aforesaid Interlocutory Application on 02.06.2025, by virtue of which, the Assignee, M/s. Phoenix ARC Private Limited had been permitted to be substituted in the proceedings on the basis of the Assignment Deed, which has been said to have been executed in their favour on 29.03.2022. 3. Primarily, the ground, which has been agitated by the Ld. Counsel for the Appellant is that, there could not have been any substitution of M/s. L & T Financ....

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....f the Registration Act, 1908, to be read with Section 49 of the Registration Act, 1908, so far it relates to the Assignment Deed. 5. At this point where the Appellant puts a question to the impugned order of 02.06.2025, it is only at a stage where prima facie the said document of Assignment Deed, has been taken into consideration as to be a document for the purposes of substitution of M/s. L & T Finance Limited with M/s. Phoenix ARC Private Limited i.e., to enable them to contest the proceedings on behalf of the Financial Creditor. The substitution itself may not be amounting to an adjudication of a document on its own merit, and its legal sanctity. 6. Accordingly, the aspect of the order passed on a substitution application on 02.06.....

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....mination of the validity of the documents itself. This is because, until and unless, based on the Assignment Deed, a substitution is permitted to be carried, the dispute itself cannot be resolved on merits in the absence of an appropriate party to be substituted. However, this grant of permission will not confer any rights at the first instance; how far the rights would be conferred to the proposed party who is expected to be substituted, would still be a question to be considered when the Company Petition itself is decided. 10. The aforesaid principle that, even an unregistered document could be read for collateral purposes has been considered by the Hon'ble Apex Court in a Judgment reported in 2008 Vol 8 SCC 564 K.B. Saha And Sons Priv....