Case Law Details
Mukesh Kumar Jain Vs Navin Kumar Upadhyay & Anr. (NCLAT Delhi)
NCLAT Delhi held that Adjudicating Authority (NCLT) directing Resolution Professional to handover the Corporate Debtor to the ex-management on account of stay of the CIRP is wholly unjustified and accordingly such direction is liable to be set aside.
Facts- The present Appeals have been filed against the two orders passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi (Court No. III) in IA No. 2403/2023 filed by Mr. Navin Kumar Upadhyay- Respondent No.1 herein and IA No. 964 of 2023 filed by Mr. Mukesh Kr. Jain, the Appellant in Company Appeal (AT) (Insolvency) No. 930-931 of 2023. Company Appeal (AT) (Insolvency) No. 930-931 of 2023 has been filed by Mr. Mukesh Kr. Jain, Resolution Professional of the Corporate Debtor- ‘CMYK Printech Ltd.’ and Company Appeal (AT) (Insolvency) No. 943-944 of 2023 has been filed by Mr. Amit Goel, Suspended Director of the Corporate Debtor.
Notably, the Adjudicating Authority by the impugned order has issued direction to the Resolution Professional to immediately handover the management of the Corporate Debtor to the CEO/Management of the Corporate Debtor.
Conclusion- Held that any such result of stay of the CIRP shall be disastrous since if the management against whom the CIRP has been initiated is handed over the charge, it is prone to misuse the assets and the assets shall be diminished, which may adversely affect the creditors of the Corporate Debtor. In view of the stay of the CIRP, it is true that the Resolution Professional cannot take any further steps in the CIRP of the Corporate Debtor and has to stay his hand from proceeding any further in the CIRP and await the order of the Appellate Court. The direction to the Resolution Professional in the impugned order to handover the Corporate Debtor to the ex-management is wholly unjustified and has to be set aside.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
