The NCLAT has quashed the ruling of the Chandigarh Bench of NCLT admitting insolvency proceedings against Inox Wind Ltd..The application, which was overruled after appointment of an interim resolution professional (IRP), was moved by Jeena & Co. under Section 9 of the Insolvency and Bankruptcy Code, 2016..Relying on the judgment passed by NCLAT in the case of Innoventive Industries vs. ICICI Bank, Inox submitted that the NCLT order has been passed by the Adjudicating Authority in violation of principle of natural justice i.e. without giving any notice to the corporate debtor prior to admission of the application..It was observed by the NCLAT that that the order passed by the NCLT was in fact in violation of rules of natural justice, and was therefore set aside..The NCLAT noted that the Rs. 57 lakh default amount in question had already been paid to the creditor by Inox Wind..NCLAT ruled,.“In the result, the appointment of Interim Resolution Professional, order declaring moratorium, freezing of account and all other order passed by the Adjudicating Authority pursuant to impugned order and action taken by the Interim Resolution Professional including the advertisement published in the newspaper calling for applications are declared illegal”.NCLAT has allowed Inox to function independently through its Board of Directors with immediately effect..The NCLAT further directed NCLT to determine the fee of Interim Resolution Professional and that Inox will pay the fees of the Interim Resolution Professional for the period he has worked..Senior Counsel Amit Sibal argued for Inox, brief by law firm India International Jurists Partners Sudhir Kumar and Pulkit Srivastav, and Anand Kishor Jha..(Read order)
The NCLAT has quashed the ruling of the Chandigarh Bench of NCLT admitting insolvency proceedings against Inox Wind Ltd..The application, which was overruled after appointment of an interim resolution professional (IRP), was moved by Jeena & Co. under Section 9 of the Insolvency and Bankruptcy Code, 2016..Relying on the judgment passed by NCLAT in the case of Innoventive Industries vs. ICICI Bank, Inox submitted that the NCLT order has been passed by the Adjudicating Authority in violation of principle of natural justice i.e. without giving any notice to the corporate debtor prior to admission of the application..It was observed by the NCLAT that that the order passed by the NCLT was in fact in violation of rules of natural justice, and was therefore set aside..The NCLAT noted that the Rs. 57 lakh default amount in question had already been paid to the creditor by Inox Wind..NCLAT ruled,.“In the result, the appointment of Interim Resolution Professional, order declaring moratorium, freezing of account and all other order passed by the Adjudicating Authority pursuant to impugned order and action taken by the Interim Resolution Professional including the advertisement published in the newspaper calling for applications are declared illegal”.NCLAT has allowed Inox to function independently through its Board of Directors with immediately effect..The NCLAT further directed NCLT to determine the fee of Interim Resolution Professional and that Inox will pay the fees of the Interim Resolution Professional for the period he has worked..Senior Counsel Amit Sibal argued for Inox, brief by law firm India International Jurists Partners Sudhir Kumar and Pulkit Srivastav, and Anand Kishor Jha..(Read order)
