Case Law Details
Gluckrich Capital Vs State of West Bengal (Supreme Court of India)
Gluckrich Capital’s application seeking clarification of a judgment and order passed by the Supreme Court of India on February 24, 2023, has been dismissed. The application was filed by Gluckrich Capital, an unsecured financial creditor of M/s. Leading Hotels Limited (LHL), which is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016. The Supreme Court had previously dismissed Gluckrich Capital’s Special Leave Petition challenging an interim order of the Delhi High Court. Gluckrich Capital sought clarification to preserve its right to initiate recovery proceedings against those responsible for fraudulent activities related to LHL. However, the Supreme Court held that seeking clarification was an attempt to undermine a judgment by the Tripura High Court and denied Gluckrich Capital’s request. The Supreme Court reaffirmed that Section 66 of the Insolvency and Bankruptcy Code cannot be invoked against third parties and that civil remedies available under the law must be pursued for recovery of dues from such parties. The application for clarification was deemed misconceived and dismissed by the Supreme Court.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
This is an application seeking clarification of judgment and order dated 24.02.2023 passed by this Court wherein the Special Leave Petition (Criminal) Diary No. 6732 of 2023 filed by the applicant was dismissed.
2. The applicant, an unsecured financial creditor of M/s. Leading Hotels limited (‘LHL’), which is facing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, approached this Court by filing the captioned Special Leave Petition (Criminal) Diary No. 6732 of 2023, challenging an interim order dated 30.11.2022 passed by Delhi High Court in Criminal M.C. No. 6408 of 2022 extending the transit anticipatory bail granted to the Respondents herein, who are stated to be suspended directors of ‘LHL’.
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