JUDGEMENT

ASHOK BHUSHAN, J. 1. This Appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 (“Code” for short) has been filed against the order dated 30.09.2021 Company Appeal (AT) (Ins.) No. 1018 of 2021 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench (Court-II) rejecting the Application I.A 3221 of 2021 filed by the Appellant for cancellation of the Non-Bailable Warrants of Arrest.

2. An Application under Section 7 of the Code was filed by the Financial Creditor- Ms. Pallavi Joshi Bakhru against the Corporate Debtor on 18.04.2018. The Adjudicating Authority vide order dated 03.07.2018 admitted the Application under Section 7 and appointed Interim Resolution Professional. An Application CA No. 400/2018 was filed by the Resolution Professional before the Adjudicating Authority seeking direction to Suspended Board of Directors of the Corporate Debtor to supply documents as specified therein. The Appellant- Suspended Board of Directors of the Corporate Debtor did not co-operate with the Resolution Professional, hence, Application under Section 19(2) of the Code was filed by the Resolution Professional. By order dated 16.07.2021 passed by the Adjudicating Authority, Suspended Directors were directed to surrender before the Tribunal on 20.07.2021 and Non- Bailable Warrants were also issued. On 03.08.2021, Suspended Directors moved an Application for cancellation of the Non-Bailable Warrants which Application was dismissed by the Adjudicating Authority on 03.08.2021. By the same order, Suspended Board of Directors were again directed to surrender before the Registrar, NCLT on or before 06.08.2021 and they were also directed to handover all the documents. Since, Suspended Directors failed to surrender, on 11.08.2021, on the Application I.A- 3221 of 2021 filed by the Suspended Directors for exemption of appearance and surrender, the Adjudicating Authority on 11.08.2021 directed the Application to be listed with CA No. 400/2018. On 30.09.2021, Application I.A- 3221 of 2021 was Company Appeal (AT) (Ins.) No. 1018 of 2021 heard and rejected. The Adjudicating Authority in its impugned order gave following reasons for rejecting the Application:-

“Heard the Ld. Counsel appearing for the Applicant as well as the RP and perused the averments made in the application. On perusal of the order dated 11.08.2021, we notice that earlier the Non-Bailable Warrants of Arrest were issued and the Applicants were directed to appear before the Ld. Registrar. But as it appears from the report of the Ld. Registrar, the Suspended Board of Directors haven’t appeared before the Ld. Registrar. Ld. Registrar referred back the matter to this Bench.

By filing this IA, the Applicant has prayed for cancellation of Non-Bailable Warrants of Arrest.

Since the Applicants have failed to comply with the directions of this Adjudicating Authority, we are not inclined to cancel the Non-Bailable Warrants of Arrest issued against the Applicants.

Accordingly, the prayer is hereby rejected and the IA is Dismissed.” 3. Aggrieved against the order dated 30.09.2021, this Appeal has been filed.

4. Shri Abhijeet Sinha, Learned Counsel appearing for the Appellants submits that in IBC proceedings, there is no occasion to issue a Non-Bailable Warrant. It was open for the Adjudicating Authority to proceed ex parte and pass appropriate order against the Suspended Directors but asking for personal presence of Suspended Directors was not required. It is submitted Company Appeal (AT) (Ins.) No. 1018 of 2021 that majority of documents as asked for by Resolution Professional have been supplied by the Appellants and their appearance and surrender was not necessary and their Application to cancel Non-Bailable Warrants has been wrongly rejected. The Adjudicating Authority does not have any jurisdiction to issue Non-Bailable Warrants.

5. Learned Counsel for the Appellants further submits that the Tribunal is bound to follow the