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2018 Supreme(AP) 681

IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
RAMESH RANGANATHAN, KONGARA VIJAYA LAKSHMI, JJ.
Deccan Chronicle Holdings Limited - Petitioners
Versus
Indiabulls Housing Finance Ltd. & Others - Respondents
W.P. No. 29732 of 2018
Decided On : 26-10-2018

Advocates Appeared:
For the Petitioner:R. Raghunandan, Senior Counsel for Sanjay Suraneni, Advocate.
For the Respondents:S. Nirajnan Reddy, Senior Counsel for Rusheek Reddy K.V. Advocate, K. Lakshman, Assistant Solicitor General.

Headnote:

Insolvency & Bankruptcy Code, 2016 - Section 14 - Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Recovery of Debt due to Bank - Insolvency proceedings - Dispossession of property - Challenged - Held, Petitioner been in occupation of the subject property, and carrying on its operations therefrom for the past several years, permitting the 1st respondent to forthwith take possession of the subject premises would undoubtedly hamper their business operations - Petitioner granted time to vacate the property - Writ petition dismissed. Para 72, 73, 74

JUDGMENT :

RAMESH RANGANATHAN, J.

1. In this Writ Petition, a writ of mandamus is sought to declare the order passed by the Chief Metropolitan Magistrate, Hyderabad, in Crl.MP. No.2479 of 2013 dated 17.08.2013, as arbitrary, illegal and violative of the moratorium order passed by the National Company Law Tribunal (‘NCLT’ for short) dated 19.07.2017 under Section 14 of the Insolvency & Bankruptcy Code, 2016 (‘IBC’ for short); and for a consequential direction to the respondents not to take any further steps to execute the warrant dated 12.07.2018, including dispossessing the petitioner company, from the property situated at 36, Sarojini Devi Road, Secunderabad, during the pendency of the Corporate Insolvency Resolution Process.

2. Facts, to the extent necessary, are that the NCLT passed an order, under Section 7 of the IBC on 19.07.2017, appointing an interim Resolution Professional in the exercise of its powers under Section 16 of the IBC. Pursuant thereto the Corporate Insolvency Resolution Process (‘CIRP’ for short) of the petitioner commenced from 19.07.2017. By its order dated 19.07.2017, the NCLT also declared a moratorium, under Section 14 of the IBC, prohibiting the following action: (i) the institution of Suits, or the continuation of pending Suits or proceedings except before the High Court and Supreme Court against the Corporate Debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (ii) transferring, encumbering, alienating or disposing of, by the Corporate Debtor, of any of its assets or any legal right or beneficial interest therein; (iii) any action to foreclose, recover or enforce any security interest created by the Corporate debtor in respect of its property, including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’ for short); (iv) recovery of any property by an owner or the lessor, where such property is occupied by, or is in the possession of, the corporate Debtor; and (v) goods and services i.e., water, electricity, printing ink, printing plates, printing blanket, solvents etc., falling under Section 14(2) of the IBC, and which are essential goods and services to the corporate debtor, shall not be terminated or suspended, and interrupted during the moratorium period.

3. The Insolvency Resolution Professional (“IRP” for short) issued a public announcement on 20.07.2017 inviting claims from the creditors of the petitioner-corporate debtor, and thereafter a committee of creditors (“CoC” for short) of the petitioner company, in respect of the claims received from its creditors, was constituted, of which the 1st respondent was a member. Since one of the financial creditors i.e. SREI Infrastructure Finance Limited (‘SREI’ for short) was denied the right to represent, participate and vote in the meetings of the CoC, they filed an application seeking permission to participate. While the NCLT initially granted interim relief, by its order dated 21.07.2017, the said application was subsequently dismissed by order dated 16.11.2017.

4. Aggrieved thereby, SREI preferred an appeal to the National Company Law Appellate Tribunal (‘NCLAT’ for short). Consequent to the order passed by the NCLT on 16.11.2017, the IRP conducted the second meeting of the CoC on 04.01.2018, wherein it was decided to extend the period of the CIRP by 90 days, and the IRP was authorized to file an application before the NCLT which extended the CIRP period, in the case of the petitioner, by a period of 90 days till 14.04.2018. Subsequently, by its order dated 08.02.2018, the NCLT confirmed the appointment of the Resolution Professional (“RP” for short) who took charge on 12.02.2018, and conducted the 4th meeting of the CoC on 16.02.2018 wherein the CoC instructed the RP to file an application, before the NCLT, seeking exemption of the period from 21.08.2017 to 16.11.2017, as the CIRP of the p






















































































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