Sri Brindhavan Brick Works Vs DiMax Restructuring Private Limited (NCLAT Chennai)
The National Company Law Appellate Tribunal, Chennai, considered a company appeal challenging the order dated 10.02.2026 passed in IA(IBC)/210(CHE)/2026 in CP(IB) No.706(CHE)/2020. At the outset, the Tribunal noted that defects pointed out by the Registry had been rectified and overruled the requirement relating to filing legible copies. It also allowed IA No.780/2026 by condoning an 11-day delay in refiling the company appeal.
The appeal primarily challenged relief (iii) granted by the Adjudicating Authority under the proviso to Section 33(5) of the Insolvency and Bankruptcy Code, 2016. By that relief, the liquidator was granted leave and prior approval to institute, prosecute and defend appropriate civil suits or other legal proceedings before the competent Civil Court challenging the unilateral termination of the Joint Development Agreement dated 14.11.2003 and cancellation of the General Power of Attorney dated 14.11.2003 by the appellant in relation to the Manapakkam Project. The permission also extended to seeking consequential and incidental reliefs including declaration, injunction, restitution, damages and recovery of amounts invested by the corporate debtor.
The Appellate Tribunal observed that the application before the Adjudicating Authority was limited to seeking permission under the proviso to Section 33(5) of the IBC to enable the liquidator to initiate appropriate legal proceedings before the competent Civil Court challenging the unilateral termination of the Joint Development Agreement and cancellation of the General Power of Attorney executed by the appellant in respect of the Manapakkam Project.
