2026 (6) TMI 804

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....ad Kumar Sharma, Member (Judicial)]: The Appellate questions the validity of the impugned order dated 09.01.2026 as it was rendered in IA(IBC) No.1616/2025, as it was preferred by the Respondent No. 1, in CP(IB) No.74/94/HDB/2024, being the proceedings held under Section 121 to be read with Section 123 of the I&B Code, that had ultimately resulted into passing of an order of directing the bankruptcy proceedings to be initiated against the present Appellant. 2. The Appellant questions the very procedural impropriety of the Tribunal, while passing the impugned order of 09.01.2026, contending thereof that, the order happens to be in utter delegation of principals of natural justice because the basic elements, which were required to be sa....

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....s Act, which has been made subsequently applicable to the proceedings under the I&B Code, by an amendment in law. 4. The Counsel for the Respondent vehemently opposes the said contention, contending thereof that, admittedly in the proceedings, held on 02.12.2025, the Appellant had put an appearance and he was heard and as such it cannot be said at their behest, that the order suffers from the non-adherence to the principles of natural justice, owing to the fact that, no effective defence could have been put forward by the Appellant to the contents of the application preferred by the Respondents, seeking the initiation of a bankruptcy proceedings as against the Appellant to be bad in the eyes of law. 5. The Counsel for the Respondents ....

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....we could not find any, even after going through the order sheet, which has been placed before us to show that, on 02.12.2025, when the Appellant appeared for the first time in the said proceedings, the Tribunal has provided an opportunity to the Appellant to file an objection to the application preferred by the Respondent under Section 121 of I&B Code before proceeding to reserve the orders on the said application on the same day. Rather to the contrary, if we go through the impugned order, particularly the finding, which has been recorded in Para 9 of the impugned order, it simply records a finding that since the repayment plan was not submitted by the Personal Guarantor and since there was no resolution plan for resolving the Personal Ins....