NCLAT (09.09.2022) in Sapan Mohan Garg RP of Sort India Enviro Solutions Ltd. Vs. Manish G Patel & Anr. [Company Appeal (AT) (Insolvency) No. 837 of 2021] held that;
RP is not empowered to initiate the prosecution but at the same time, it has been held that in order to initiate prosecution under Section 70 the complaint has to be filed by the Insolvency and Bankruptcy Board of India (IBBI) or Central Government or person authorized by the Central Government.
Excerpts of the order;
09.09.2022: This Appeal is directed against the order dated 06.09.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad) Court-2, by which an application bearing I.A. No.577 of 2021 filed by the Appellant (RP) invoking Section 70 of the Insolvency and Bankruptcy Code, 2016 (for short ‘Code’) was dismissed only on the ground that the Tribunal lacks jurisdiction to entertain such an application. Counsel for the Appellant, during the course of hearing, has referred to a decision of this Tribunal passed in CA (AT) (Ins) No. 169 of 2022, in the matter of ‘Vivek Prakash (Suspended Director & MD) vs. Dinesh Kr. Gupta, Liquidator of M/s Jarvis Infratech Pvt. Ltd. & Anr.’ dated 21.02.2022, passed by National Company Law Appellate Tribunal in which it has been held that the RP is not empowered to initiate the prosecution but at the same time, it has been held that in order to initiate prosecution under Section 70 the complaint has to be filed by the Insolvency and Bankruptcy Board of India (IBBI) or Central Government or person authorized by the Central Government.
In view of the aforesaid facts and circumstances, we do not find any error in the order of the Ld. Tribunal, therefore, the present Appeal is hereby dismissed. However, liberty is granted to the RP to file an appropriate application to the IBBI in this regard, if so advised.
----------------------------------------
No comments:
Post a Comment