The High Court disposed of an appeal contending that proceedings unable to continue against a respondent admitted as a corporate debtor and in Insolvency Resolution Process under section 7 with section 14 of the Code reserving liberty to prosecute claims elsewhere.
Disposed of the appeal reserving liberty to petitioner to prosecute claim before appropriate forum.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
C/LPA/776/2017 ORDER DATED: 22/06/2022
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/LETTERS PATENT APPEAL NO. 776 of 2017
In R/SPECIAL CIVIL APPLICATION NO. 10741 of 2016
With CIVIL APPLICATION (FOR STAY) NO. 1 of 2017 In R/LETTERS PATENT APPEAL NO. 776 of 2017
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CANARA BANK
Versus
NAKODA LIMITED
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Appearance:
MR VISHWAS K SHAH(5364) for the Appellant(s) No. 1 MR. BHAUMIK DHOLARIYA(7009) for the Respondent(s) No. 1 MR. JAIMIN R DAVE(7022) for the Respondent(s) No. 1
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CORAM: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR
and HONOURABLE MRS. JUSTICE MAUNA M. BHATT
Date : 22/06/2022
ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR)
1. Learned counsel Mr. Dave appearing for respondent
has placed on record order dated 12.07.2021 passed by National Company Law Tribunal, Ahmedabad Court No. 1 in CP(IB) No. 169/NCLT/AHM/2019, whereunder the respondent – Company herein is admitted as a corporate debtor and also admitted to the Insolvency Resolution Process under section 7 of the Insolvency & Bankruptcy Code, 2016.
Page 1 of 2
C/LPA/776/2017 ORDER DATED: 22/06/2022
2. In the teeth of the said order and in background of section 14 of the Code coming into effect, the continuation of pending proceedings against the corporate debtor cannot be continued. Hence, placing the said order on record, this petition stands disposed of reserving liberty to petitioner to prosecute its claim before appropriate Forum in accordance with law. This fact of the respondent company having been admitted as corporate debtor is not disputed by Mr. Vishwas K. Shah, learned counsel appearing for petitioner.
3. Pending applications, if any, stands consigned to
records.
(ARAVIND KUMAR,CJ)
(MAUNA M. BHATT,J)
AMAR SINGH
Page 2 of 2
1 issue framed by the court
Whether pending proceedings against a corporate debtor can continue after its admission under section 7 and operation of section 14 of the Insolvency Code.
2 provisions across 1 enactments
Canara Bank
Nakoda Limited
Aravind Kumar
Mauna M. Bhatt
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
