NCLAT (2019.12.19) in Akram Khan, Director vs. Bank of India Limited & Ors. [Company Appeal (AT) (Insolvency) No. 1092 of 2019] while allowing appeal against the orders of AA under section 7, remitted the matter back to AA for fixing of the fees of RP.
Excerpts of the order;
Bank of India Limited (‘Financial Creditor’) preferred application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the ‘I&B Code’) to initiate ‘Corporate Insolvency Resolution Process’ in respect of Poonam Drums and Containers Private Limited. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench by impugned order dated 20th September, 2019 admitted the application and appointed ‘Interim Resolution Professional’. The Appellant, Director of ‘Corporate Debtor’ challenged the same on the ground that the application under Section 7 of the I&B code was barred by limitation.
# 12. For the reason(s) aforesaid, we set-aside the impugned order dated 20th September, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench in CP 970 (IB)/MB/2019 and dismiss the application under Section 7 of the I&B code filed by the Bank of India Limited.
# 13. In the result, ‘Corporate Debtor’ – Poonam Drums and Containers Private Limited is released from the rigor of the ‘Corporate Insolvency Resolution Process’. All actions taken by the ‘Interim Resolution Professional’/ ‘Resolution Professional’ and ‘Committee of Creditors’, if any, are declared illegal and set-aside. The Resolution Professional is directed to handover the records and assets of the ‘Corporate Debtor’ to the Director of the ‘Corporate Debtor’ immediately.
# 14. The matter is remitted to the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench to decide the fee and cost of the ‘Corporate Insolvency Resolution Process’ as incurred by the ‘Resolution Professional, which is to be borne and paid by the Bank of India Limited (‘Financial Creditor’). The Appeal is allowed with the aforesaid observations and directions. No costs.
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