The National Company Law Appellate Tribunal (NCLAT) directed the re-adjudication since the National Company Law Tribunal (NCLT) suspended the director of GK Steel and Allied Industries without allowing them to hear.
Aggrieved by the Impugned Order passed by National Company Law Tribunal, Chennai Bench, Chennai, K. Narayanaswamy, the appellant who was the Suspended Director of M/s GK Steel and Allied Industries Limited (the ‘Corporate Debtor’), has filed the ‘Appeal’, under Section 61 of the Insolvency and Bankruptcy Code, 2016.
The ‘Adjudicating Authority’ directed the first Respondent Resolution Professional to exclude the amount of interest claimed by the Respondent 2 & 3 towards the outstanding dues of the Corporate Debtor as the Corporate Debtor was a sick undertaking and proceedings were pending BIFR as the contract stood suspended under Section 22 of The Sick Industrial Companies (Special Provisions) Act, 1985.
It was the case of the Counsel for the ‘Appellant’ that the Impugned Order is a non-speaking Order which does not disclose the reasons for the dismissal of the application and is contrary to the ‘Principles of Natural Justice’.
The Counsel for the ‘Appellant’ sought an opportunity to be heard before the ‘Adjudicating Authority’ on the merits of the matter specifically on the ground that the ‘Application’ has raised repeated objections to the Constitution of the Committee of Creditors(CoC).
A two-member bench comprising Justice M. Venugopal, Member (Judicial) and Ms Shreesha Merla] Member (Technical) held that “in the interest of Justice, an opportunity may be accorded to the ‘Appellant’, herein to be heard on merits, before the ‘Adjudicating Authority’ and therefore, we find it a fit case to remand the matter to the ‘Adjudicating Authority’ and the ‘Adjudicating Authority’ shall decide the ‘Application’ within a period of ‘four weeks’ from the date of this Order. It is made clear that this ‘Tribunal’ has not commented on the merits of the matter and the ‘Adjudicating Authority’ shall proceed by Law, uninfluenced by any observations in this Order.” The authority allowed the appeal and set aside the Order of the Adjudicating Authority and the matter is remanded back to the Adjudicating Authority for fresh adjudication on merits
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