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DEVAN RAMACHANDRAN
Tap world, rep. By its managing partner Mr. M. K. Ansari – Appellant
Versus
Union Of India – Respondent
JUDGMENT :
The petitioners are asserted to be the members of the 'Kerala Chamber of Commerce and Industry' ('KCCI' for short) which is stated to be a Company originally registered under Section 25 of the Companies Act, 1956.
2. The petitioners impugns Ext.P6 order issued by the 'National Company Law Tribunal' ('NCLT' for short), issued by it invoking power under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('IBC' for short) quathe 'KCCI'; and impute that the said order is the product of a fraud committed by it, in conjunction with the Financial Institution, which approached the said Tribunal.
3. Sri.D.Anil Kumar – learned counsel for the petitioners, explained that the controversy has its genesis in the fact that the 'KCCI' obtained certain financial facilities from the South Indian Bank Ltd, which was then declared by the latter as a Non-Performing Asset. He submitted that the Bank, thereupon, initiated action under the Recovery of Debts and Bankruptcy Act, 1993 before the jurisdictional Debt Recovery Tribunal ('DRT' for short); and also initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act ('SARFAESI A
The availability of an alternative statutory remedy does not necessarily preclude the jurisdiction of the court under Article 226 of the Constitution of India.
Failure to provide liberty in withdrawing insolvency application bars subsequent applications; pending appeals must be resolved appropriately.
The court lacks jurisdiction to entertain execution applications against dissolved entities; disputes of fraud must be resolved by NCLT as per the Insolvency and Bankruptcy Code.
The NCLT has jurisdiction to adjudicate insolvency petitions against personal guarantors even in the absence of pending CIRP against the corporate debtor, as per the provisions of the Insolvency and ....
The main legal principle established is that the provisions of Section 12 of the Insolvency and Bankruptcy Code, 2016 are mandatory, and any extension of the Corporate Insolvency Resolution Process s....
CIRP proceedings under Section 7 of the Insolvency and Bankruptcy Code are independent and can proceed concurrently with winding-up proceedings, with overriding effect and rights of secured creditors....
The court ruled that the NCLAT erred in approving a settlement without adhering to the procedural requirements of the Insolvency and Bankruptcy Code, emphasizing the collective nature of insolvency p....
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