Case Law Details
Bank of Baroda (Erstwhile Vijaya Bank) and Others Vs Suchi Paper Mills Ltd and Others ( Supreme Court of India)
The Supreme Court’s recent decision declines to entertain an appeal contesting the National Company Law Appellate Tribunal’s remand of a National Company Law Tribunal order. This case involves Bank of Baroda (Erstwhile Vijaya Bank) and Others versus Suchi Paper Mills Ltd and Others.
The Supreme Court, in its judgment dated October 16, 2023, addressed the National Company Law Appellate Tribunal’s action of setting aside the National Company Law Tribunal’s order from April 1, 2020, which had previously approved the Resolution Plan. The basis for this decision lay in the violation of Section 419(3) of the Companies Act 2013 and the lack of consideration of circumstances mandated under Section 30(2) of the Insolvency and Bankruptcy Code 2016 by the Single Member of the NCLT.
During the proceedings, Mr. Gaurav Agarwal, senior counsel for the appellant, and Mr. R Venkataramani, Attorney General for India representing the fourth respondent (Kendriya Bhandar, the successful Resolution Applicant), presented their arguments. The appellant emphasized the steps taken in compliance with the approval order and the settlement of financial creditors’ dues. However, the Supreme Court refrained from entertaining the appeal, given the nature of the NCLAT’s remand order, preserving the rights of the parties to present their contentions before the NCLT upon remand.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
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