Back
PAMIDIGHANTAM SRI NARASIMHA, MANOJ MISRA
Mohammed Enterprises (Tanzania) Ltd. – Appellant
Versus
Farooq Ali Khan – Respondent
JUDGMENT :
1. Leave Granted.
2. These appeals under Article 136 of the Constitution are against the judgment of the High Court of Karnataka exercising power of judicial review1 [In Writ Petition No. 483 of 2023 (GM-RES) dated 22.04.2024] interdicting Corporate Insolvency Process culminating in the acceptance of a resolution plan by the Committee of Creditors in minutes of meeting dated 11.02.2020. In this batch of matters, there are three appeals, one by the successful resolution applicant METL, the other by the Bank comprising the Committee of Creditors, and the third appeal by the Resolution Professional appointed by the adjudicating authority to conduct CIRP against Associate Decor Ltd (“Corporate Debtor”).
3. The short facts are that the Corporate Insolvency Resolution Proceedings were admitted against the corporate debtor at the instance of Oriental Bank of Commerce2 [Merged with Punjab National Bank in 2020] (a financial creditor) on 26.10.2018. It is submitted by Dr Abhishek Manu Singhvi, Ld. Senior Advocate appearing on behalf of the successful resolution applicant that upon the resolution professional issuing the Information Memorandum under Section 29 of the Code on 28.11.20
Corporate Insolvency Resolution Proceedings – Unjustified interference with proceedings initiated under Insolvency and Bankruptcy Code 2016, breaches discipline of law.
The High Court improperly exercised its jurisdiction under Article 226, disrupting the statutory process of personal insolvency proceedings mandated by the Insolvency and Bankruptcy Code.
The High Court's direction to defer the Corporate Insolvency Resolution Process was unjustified after declining to grant the main relief of consolidation, breaching the provisions of the Insolvency a....
The High Court's direction to defer the CIRP was unjustified and breached the provisions of the Insolvency and Bankruptcy Code, 2016.
Resolution Professionals must ensure strict compliance with the Insolvency and Bankruptcy Code, as failure to do so justifies suspension of their registration.
The court emphasized the importance of maintaining a level playing field in the corporate insolvency resolution process and found that the modification of the resolution plan by the appellant warrant....
The right to present applications ceases once a matter is reserved for orders, reinforcing the principle that IBC proceedings are complete codes requiring cautious judicial intervention.
The stay order by the Supreme Court renders liquidation of the corporate debtor improper if the implementation timelines are affected.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
