Karnataka HC Disposes Writ as Company Entered Corporate Insolvency Process

Robin Ghose Vs State of Karnataka (Karnataka High Court)

The Karnataka High Court disposed of a writ petition seeking implementation of a Real Estate Regulatory Authority (RERA) order directing payment of ₹25,39,737 to the petitioner. During the proceedings, the petitioner informed the Court that Respondent No. 4 had been admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Bengaluru Bench, through an order dated 23.08.2024.

A copy of the NCLT order imposing a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 was placed before the Court. Taking note of the NCLT order and the applicability of Section 14 of the IBC, the High Court declined to express any opinion on the merits of the case and disposed of the writ petition. The Court granted liberty to the petitioner to revive the proceedings, subject to the outcome of the insolvency proceedings pending before the NCLT.

FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT

Learned counsel for the petitioner files a memo which reads as under:

“The Advocate for the Petitioner most respectfully and humbly submits that the Respondent No.4 has been admitted into Corporate Insolvency Resolution Process vide Order dated 23.08.2024 in CP(IB) 98/BB/2024 passed by the Hon’ble National Company Law Tribunal, Bengaluru Bench. A copy of the Order dated 23.08.2024 is produced herewith.

WHEREFORE, it is most respectfully and humbly prayed that this Hon’ble Court may be pleased to take the present memo on record and pass appropriate Orders in the interest of justice and equity.”

2. A copy of the order dated 23.08.2024 passed by the National Company Law Tribunal (for short, ‘NCLT’), Bangalore Bench, Bangalore, according moratorium has been produced by virtue of Section 14 of The Bankruptcy Code, 2016, (for short, ‘IBC, 2016’) which would come into force.

3. The petitioner is before this Court principally being aggrieved by the inaction on the part of respondents nos.1 to 3 in giving effect to the order dated 28.10.2019 passed by the Real Estate Regulatory Authority, in terms of which petitioner was entitled to receive ₹25,39,737/-.

4. In view of order passed by the NCLT provision of Section 14 of the IBC, 2016 becomes applicable.

5.Without expressing any view on the merits in the light of the order passed by the NCLT, writ petition stands disposed of.

Petitioner is at liberty to revive this subject to the outcome of the proceedings before the NCLT.