Disposed

Asset Reconstruction Company (India) Ltd. v. Gpt Steel Industries Ltd.

NCLAT15 Feb 2019151/2019

Case brief

AI extract

What is this about?

The Appellant Financial Creditor challenged delay in Section 7 proceedings. The Tribunal directed the Adjudicating Authority to expedite disposal within two weeks or face intervention on record to prevent protracted pre-admission trials.

What did the court decide?

Directing the Adjudicating Authority to expedite disposal of Section 7 application within two weeks.

Asset Reconstruction Company (India) Ltd. Vs Gpt Steel… — Insolvency and Bankruptcy | NCLAT (2019)

¶1

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI Company Appeal (AT) (Insolvency) No. 151 of 2019

¶2

IN THE MATTER OF:

¶3

Asset Reconstruction Company (India) Ltd. …Appellant

¶4

¶5

GPT Steel Industries Ltd.

¶6

….Respondent

¶7

Present:

¶8

For Appellant: For Respondent:

¶9

Mr. Dinkar Singh, Advocate.

¶10

O R D E R

¶11

15.02.2019: Learned counsel for the Appellant submits that application of Appellant – Financial Creditor under Section 7 of the I&B Code is pending consideration before the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad at the pre-admission stage since 1^st March, 2018 and the matter has been adjourned time and again.

¶12

From the perusal of impugned order it appears that both the parties are represented before the Adjudicating Authority and the matter has been adjourned at the request of the learned counsel for the Respondent- Corporate Debtor to 18^th February, 2019.

¶13

I am dismayed to notice that a limited enquiry has been converted into a full dressed trial. Pre-admission proceedings cannot be permitted to protract. This Appellate Tribunal has observed in a recent judgment that Corporate Insolvency Resolution Process is not a recovery proceeding and the Adjudicating Authority has to strictly adhere to the rules of procedure and the timelines set out in the I&B Code. The Adjudicating Authority should be alive to the object sought to be achieved by the I&B Code and ensure that all efforts to derail the process are frustrated.

¶14

-2-

¶15

After hearing learned counsel for Appellant for a while I am of the opinion that this appeal can be disposed of at the very threshold stage by directing the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench Ahmedabad to expedite the disposal of application under Section 7 of the I&B Code and pass an appropriate order preferably within two weeks failing which this Appellate Tribunal may send for the record of Adjudicating Authority and pass appropriate order.

¶16

A copy of this order be provided to learned counsel for the Appellant for placing the same before the Adjudicating Authority.

¶17

The appeal stands disposed of with aforesaid observations and directions.

¶18

[Justice Bansi Lal Bhat] Member (Judicial)

¶19

am/sk

¶20

Company Appeal (AT) (Insolvency) No. 151 of 2019

Asset Reconstruction Company (India) Ltd. v. Gpt Steel Industries Ltd.

Case brief

What is this about?

What did the court decide?

Asset Reconstruction Company (India) Ltd. v. Gpt Steel Industries Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Senthil Kumar Karmegam Vs Great Unison Contractors India Pvt. & Anr.

Jsw Steel Ltd. Vs Ashok Kumar Gulla & Ors.

Sanjay Kapoor Vs Tdi Infrastructure Ltd.

Anand Ram Vs Prabhjit Singh Soni & Anr.

Narayanaa Electrical Solutions Pvt. Ltd. Vs Hdfc Bank Ltd.

Shalini Publicity Creative Pvt. Ltd. Vs Dena Bank