In the matter of Bihar Medical Services and Infrastructure Corporation Limited CP(IB)-224(KB)2022
Case brief
What is this about?
The NCLT Bench, Kolkata, disposed of an insolvency application filed under Section 9 IBC relying on an unchallenged MSMED award. The corporate debtor contested the award's enforceability pending a writ petition before the High Court. The Bench adjourned proceedings to await the High Court's decision.
What the court decided
IN THE NATIONAL COMPANY LAW TRIBUNAL KOLKATA BENCH, (Court – II) KOLKATA
CP(IB)/224(KB)2022
An application under section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
In the matter of:
Baid Power Services Private Limited , (CIN: U31909WB2003PTC096498 ), having its registered office at 152, Block – B, Lake Town, Kolkata 700089;
… Operational Creditor
-Versus-
M/s. Bihar Medical Services and Infrastructure Corporation Limited, A Government of Bihar Undertaking, (CIN: U85100BR2010SGC015886), having its office at 4th Floor, Bihar State Building Construction Corporation Limited, Hospital Road, Shastri Nagar, Patna 800023.
… Corporate Debtor Date of Hearing: 17/02/2023 Date of Pronouncement: 12/05/2023
| Coram: | |
|---|---|
| Smt. Bidisha Banerjee | : Member (Judicial) |
| Shri Balraj Joshi | : Member (Technical) |
| Appearances through hybrid mode: | |
| For Operational Creditor | : Mr. Vinay Kumar Jain, Adv. Ms. Pragati Prajapati, Adv. |
| For Corporate Debtor | : Mr. U. P. Singh, Sr. Adv. Mr. Kumar Manish, Adv. Mr. Surendra Kumar, Adv. |
Issues for consideration
3 issues framed by the court
Whether an arbitral award under the MSMED Act, 2006 is enforceable before the Adjudicating Authority under Section 9 of the IBC, 2016 when the award is pending challenge before the High Court.
Whether the Adjudicating Authority can admit an insolvency application based on an award that is currently sub-judice in a writ petition filed by the corporate debtor.
Whether the NCLT should await the outcome of the writ proceedings regarding the legality of the MSMED award before proceeding with the insolvency application.
Parties & counsel
- applicant
Baid Power Services Private Limited
Coram
Bidisha Banerjee
Balraj Joshi
Case details
As recorded by the court registry
- Court
- NCLT
- Decided on
- · May
- CNR
- nclt-aff8ac90be9b2c5340815f796c48b020
- Topic
- Arbitration
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