NCLT rejects CIRP Petition against Birla Global Corporate Private Limited [Read Order]
NCLT – CIRP Petition – Birla Global Corporate Private Limited – Taxscan
NCLT – CIRP Petition – Birla Global Corporate Private Limited – Taxscan
The National Company Law Tribunal (NCLT) has recently rejected the Corporate Insolvency Plea filed by Birla Cotsyn (India) Limited through its liquidator Anil Goel seeking to initiate a Corporate Insolvency Resolution Process (CIRP) against Birla Global Corporate Private Limited.
The petition was filed, invoking the provisions of Section 7 Insolvency and Bankruptcy Code (hereinafter called “Code”) read with Rule 4 of Insolvency & Bankruptcy (Application to Adjudication Authority) Rules, 2016 for a Resolution of an unresolved Financial Debt of Rs. 3,18,19,231/-.
The Petitioner has submitted that it had granted a loan to the Respondent to the tune of 2 Crore Rupees during the period 2014-2015 which was evident from the balance sheets of the Respondent as on 31.03.2015.
Thereafter, vide order dated 20.11.2018 in C.P. (1B) 579 of 2018 the CIRP proceedings were initiated against the Petitioner and an Interim Resolution Professional was appointed.
The CIRP period expired on 19.08.2019 and the liquidation process was initiated against the Petitioner vide order dated 24.09.2019, whereby Anil Goel (petitioner-liquidator) was appointed as the Liquidator of the Petitioner.
The Respondent submitted that the Petitioner has failed to obtain the necessary approval from this Tribunal as required under Section 33(5) of the Insolvency and Bankruptcy Code (IBC). As it is an undisputed fact that the Petitioner itself is undergoing the liquidation process and, therefore, by virtue of Section 33(5) of the Code, the Liquidator had to obtain prior approval of the Adjudicating Authority before initiating any Suit or Legal Proceeding on behalf of the Petitioner Company. However, the Petitioner has failed to obtain an order of this Tribunal which authorizes the Petitioner to file the present Petition, as per the contentions of the respondent.
The two-member tribunal Bench of Kuldip Kumar Kareer, Member (Judicial) and Anuradha Sanjay Bhatia, Member (Technical) observed that the Petitioner is itself a company undergoing Liquidation and the present Petition has been filed by the Liquidator of the Petitioner. The Petitioner Company went into liquidation vide order dated 24.09.2019.
It was thereby opined that the proviso under Section 33(5) of the is mandatory in nature. Therefore, the Bench is of the considered view that the present Company Petition had been filed without obtaining the prior approval of the Adjudicating Authority, which was liable to be dismissed and dismissed the plea in a result.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
