The court allows the appellant to challenge the inclusion of certain creditors in the Committee of Creditors while maintaining the order of admission under the IBC.

JUDGMENT

ASHOK BHUSHAN, J.

This Appeal by the suspended Director of the Corporate Debtor – Proplarity Infrastructure Pvt. Ltd. has been filed challenging the order dated 03.07.2024 passed by National Company Law Tribunal, New Delhi, Principal Bench admitting Section 7 Application filed by the Financial Creditors (Respondent Nos.1 to 4 herein). The Appellant aggrieved by the order has come up in this appeal.

2. Brief facts necessary to be noticed for deciding the Appeal are:

(i) Respondent Nos.1 to 4 claiming to be Financial Creditors of the Corporate Debtor alleging that as per Loan Agreement dated 13.10.2016, total amount due and in default is Rs.10,21,07,880/-, filed Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the “IBC”) in April 2024. The Adjudicating Authority issued notice to the Corporate Debtor on the Application. The Adjudicating Authority noticed in the order that notice having been issued it deemed to be served on the Corporate Debtor and since no one appeared, hence proceeded to consider the Application on merits and passed an order of admission on 03.07.2021.

(ii) In pursuance of the order dated 03.07.2021, the Interim Resolution Professional (“IRP”) issued a publication on 12.07.2024 inviting claims and 23.07.2024 was the last date for submission of the claim. Claims were filed by Respondent Nos.1 to 4 and other claimants, claiming that they are Financial Creditors. The IRP provisionally admitted the claims and constituted the Committee of Creditors (“CoC”) on 25.07.2024 and filed the report of constitution of CoC before the Adjudicating Authority. An email was also sent to the Appellant and other Financial Creditors on 26.07.2024, informing about constitution of the CoC.

3. The Appellant, suspended Director of the Corporate Debtor filed this Appeal on 29.7.2024, which came for consideration before this Tribunal on 31.07.2024, on which date, following order was passed:

“31.07.2024: Ld. Counsel for the appellant submits that Section 7 application have been admitted by the impugned order and in pursuance of which a Committee of Creditors have already been constituted. It is submitted that appellant has settled with all 4 applicants and one other person who has filed the application but the RP has admitted two persons as Members of CoC who according to the appellant are related party. The said submission is opposed by one of the CoC Members who seeks liberty to file an application for impleadment.

Let the application for impleadment be filed by tomorrow.

List on 05.08.2024.

In the meantime, meeting of CoC be adjourned after 05.08.2024.”

4. IA No.5734 of 2024 has been filed by M/s Creta Infrastructure Pvt. Ltd. and IA No.5505 of 2024 has been filed by M/s Proplarity Infratech Pvt. Ltd., seeking impleadment in the Appeal. The Appellant has filed reply to both the IAs. We permit the Applicants to intervene in the Appeal.

5. We have heard Shri Abhishek Anand, learned Counsel for the Appellant; Shri Sunil Fernandes, learned Senior Counsel appearing on behalf of Intervenor; Shri Krishnendu Datta, learned Senior Counsel has also appeared for Intervenor in IA No.5505 of 2024; and Shri Alok Tripathi, learned Counsel has appeared for Respondent Nos.1 to 4.

6. Shri Abhishek Anand, learned Counsel for the Appellant submits that Section 7 Application was filed by Respondent Nos.1 to 4 claiming to be Financial Creditors, with whom the Appellant has entered into settlement on 26.07.2024 and under which settlement, the Appellant has