Satyabrata Mitra Vs Earth Towne Infrastructure Pvt. Ltd. (NCLAT Delhi)
NCLAT Delhi held that the threshold criteria is applicable at the time of filing Section 7 application under Insolvency and Bankruptcy Code and not subsequently. Accordingly, the present appeal is allowed and order is set aside and remanded back.
Facts- M/s Earth Towne Infrastructure Pvt. Ltd. (‘ETIPL’) who is the Corporate Debtor, is the Respondent herein. The Appellant submitted that, ETIPL is the landowner and developer company for the project initiated by Earth Infrastructure Ltd. (“EIL”), which is the holding company of ETIPL. The Appellant contends that EIL was admitted into CIRP vide order dated 06.06.2018, and the Resolution Plan was approved by the Committee of Creditors (“CoC”) on 28.06.2019 and thereafter by the Adjudicating Authority on 05.04.2021. However, on 30.01.2023, the said approved Resolution Plan was set aside by this Appellate Authority, and it is currently pending adjudication before the Hon’ble Supreme Court.
The present appeal has been filed by the Appellant i.e. Mr. Satyabrata Mitra and 114 others u/s. 61 of the Insolvency and Bankruptcy Code, 2016 (‘Code’) against the Impugned Order dated 21.10.2024 passed by the National Company Law Tribunal, New Delhi, Bench IV (‘Adjudicating Authority’).
Conclusion- Held that the threshold criteria is applicable at the time of filing Section 7 application and not subsequently. We find clear error in the Impugned Order on this ground.
