Case Law Details
Prafulla Purushottamrao Gadge Vs Narayan Mangal (NCLAT Delhi)
The submission raised by the Counsel for the Appellant that the Application which has been filed on 25.06.2021 under Section 7 has to fulfill the requirements of threshold as introduced by Notification dated 24.03.2020 has substance. The Adjudicating Authority has not adverted to the said issue and has admitted the Application. The submission of the Counsel for the Respondent that Application dated 25.06.2021 is in continuation of the earlier Application cannot be accepted. After 13.12.2019, I.A 1128/2020 for restoration was filed which was dismissed on 02.02.2021 by the Adjudicating Authority. Thus, the Adjudicating Authority has refused to restore the earlier Section 7 Application which order has become final. Further, Learned Counsel for the Appellant has rightly referred to Clause 12 of the Settlement Agreement which was earlier filed in the earlier proceeding where it was mentioned that in event, any default is committed in the Settlement Agreement, there shall be liberty to initiate fresh legal proceedings under Section 7. We, thus, are of the view that the Application filed under Section 7 by the Respondent No.1 not having fulfilling the threshold of Rupees One Crore ought not to have been entertained and the Adjudicating Authority committed error in admitting the Application. We, thus, allow the Appeal, set aside the order dated 04.04.2022 impugning this Appeal.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
Heard Learned Counsel for the Appellant and Learned Counsel appearing for the Respondent No.1 as well as the Interim Resolution Professional. With the consent of the parties, we dispose of the Appeal at the stage of admission.
2. This Appeal has been filed against the order dated 04.04.2022 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Court-V, by which the Application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“Code” for short) has been admitted. Few background facts need to be noted for deciding this Appeal are:-
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