Allowed

Avishkar Innovative Private Limited v. the Registrar

Karnataka HC4 Sept 2024WP/12029/2024

Case brief

AI extract

What is this about?

Petitioner filed writ petition seeking quashing of NCLT order reserving matter under Section 7 IBC without adequate hearing. Court allowed petition, quashed impugned order, directed hearing and expedited disposal within six weeks.

What did the court decide?

Impugned order of NCLT quashed; Tribunal directed to provide hearing to petitioner and conclude proceedings within six weeks.

Avishkar Innovative Private Limited Vs the… — Insolvency and Bankruptcy | Karnataka HC (2024)

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1 - NC: 2024:KHC:36619 WP No. 12029 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 4^TH DAY OF SEPTEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 12029 OF 2024 (GM-RES)

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BETWEEN:

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AVISHKAR INNOVATIVE PRIVATE LIMITED, A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.970/32, 50 FEET ROAD, RAGHAVENDRA BLOCK, 11^TH MAIN, NEAR AYYAPPA TEMPLE, SRINAGAR, BENGALURU – 560 050. REPRESENTED BY ITS DIRECTOR MRS. RAKSHA KRISHNA MURTHY.

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…PETITIONER

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(BY SRI. ATUL M., ADVOCATE)

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AND:

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Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA

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THE REGISTRAR, NATIONAL COMPANY LAW TRIBUNAL, BENGALURU BENCH, 12^TH FLOOR, RAHEJA TOWERS, VITTAL MALLYA RD, K G HALLI, D'SOUZA LAYOUT, ASHOK NAGAR, BENGALURU – 560 001.

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CANARA BANK, A SCHEDULED COMMERCIAL BANK, HAVING BRANCH OFFICE AT ARM-1 BRANCH, HAVING ITS OFFICE AT SPENCER TOWERS, MG ROAD, BENGALURU – 560 001.

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…RESPONDENTS

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(BY SRI. KUMAR M N., ADVOCATE FOR R1)

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NC: 2024:KHC:36619 WP No. 12029 of 2024

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THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO A) PASS AN ORDER OF WRIT OF CERTIORARI TO QUASH / SET ASIDE THE IMPUGNED ORDER DATED 05/03/2024 (ANNEXURE - A) PASSED BY THE HONBLE NCLT, BENGALURU BENCH IN CASE BEARING C.P(IB) NO. 11/BB/2024 AND ETC.,

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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ORAL ORDER

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Petitioner's loan account was declared as non performing asset and the respondent- Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP process against the petitioner. The National Company Law Tribunal ('NCLT' for short), on 05.03.2024, after hearing learned counsel for the respondent- Bank herein and noting the absence of the petitioner herein, reserved the matter for orders.

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Petitioner's grievance is that, NCLT without providing sufficient opportunity of hearing to the petitioner, has reserved the matter for pronouncement of orders and therefore, the right and interest of the petitioner would be adversely affected.

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Learned counsel for the respondent * No.2 on instruction submits that he has no objection for quashing the impugned order. However, requests this Court to issue a direction to the NCLT to dispose of the matter expeditiously.

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corrected vide chamber order dated 30.09.2024

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NC: 2024:KHC:36619 WP No. 12029 of 2024

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In view of the above, I pass the following;

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ORDER

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i. Writ petition is allowed .

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ii. The impugned order dated 05.03.2024 passed by NCLT, Bengaluru in CP(IB) No.11/BB/2024 is hereby quashed and the Tribunal is directed to provide an opportunity of hearing to the petitioner and thereafter, to proceed in accordance with law.

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iii. The Tribunal to conclude the proceedings within six weeks from the date of receipt of certified copy of this order.

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Sd/(HEMANT CHANDANGOUDAR) JUDGE

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PN List No.: 1 Sl No.: 40

Avishkar Innovative Private Limited v. the Registrar

Case brief

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Avishkar Innovative Private Limited v. the Registrar

Case brief

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