Appeal against NCLT’s order dismissing interlocutory application of corporate debtor is not maintainable: NCLAT

Case details: Kerala Ayurveda Ltd. v. Tata Global Beverages Ltd. - [2021] 129 taxmann.com 212 (NCLAT - Chennai)

Judiciary and Counsel Details

• • Venugopal M., Judicial Member and V.P. Singh, Technical Member
  • T.K. Bhaskar and Sanjay Lodha, Advs. for the Appellant.
  • Joseph Kodianthara and Mithun, Advs. for the Respondent.

Facts of the Case

The financial creditor filed Corporate Insolvency Resolution Process (CIRP) application on account of default on part of the corporate debtor. The NCLT, on basis of the extract of a statement of accounts maintained by the financial creditor, dismissed an interlocutory application filed by the corporate debtor raising plea of limitation.

In the appeal, the corporate debtor sought permission to raise pleas of limitation and also as regards aspect of true extract of the statement of accounts maintained by financial creditor.

Although the instant appeal was not maintainable in law, liberty was to be granted to a corporate debtor to raise the plea of limitation in the main CIRP application before NCLT being a ‘question of fact and law’.

Further, it was open to a corporate debtor to raise a plea of veracity/admissibility of true extract of the statement of accounts maintained by the financial creditor and both sides were to be at liberty to marshal on factual and legal pleas to raise same before NCLT while adverting to or countering same,

NCLT Held

Therefore, the NCLT was to provide an adequate opportunity of hearing to respective parties and pass a reasoned speaking order on merits, uninfluenced and untrammelled with any of observations made by instant Tribunal.

List of Cases Referred to

• • Kerala Ayurveda Ltd. v. Tata Global Beverages Ltd. [2021] 129 taxmann.com 211 (NCLT – Kerala) (para 4).