IBBI not involved in litigation b/w two parties with pending appeal by Financial Creditor

Case Details: Insolvency & Bankruptcy Board of India v. GTL Infrastructure - [2023] 147 taxmann.com 189 (NCLAT-New Delhi)

Judiciary and Counsel Details

• • Rakesh Kumar Jain, Judicial Member & Naresh Salecha, Technical Member
  • Ashish Verma, Adv. for the Appellant.
  • Ninad Laud, Atharv Gupta & Rashika Narain, Advs. for the Respondent.
  • Rohit Gupta for the Financial Creditor.
  • Vikram Nankani, Sr. Counsel & Rohan Rajadhyaksha for the Corporate Debtor.

Facts of the Case

In the instant case, the petition for initiation of Corporate Insolvency Resolution Process (CIRP) was filed by the financial creditor under section 7 of the Insolvency and Bankruptcy Code, 2016 on default of making repayment of the due amount, before NCLT against the respondent corporate debtor.

The NCLT by impugned order dismissed the said petition. Aggrieved by the said order, the financial creditor challenged NCLT’s order before the Appellate Tribunal NCLAT and, the matter was scheduled for further hearing.

Based on the incorrect interpretation of provisions of IBC, 2016 at the time of the dismissal of the CIRP petition, the Appellant-IBBI filed an appeal on the ground that it was responsible for various rules and regulations concerning corporate insolvency resolution amongst others and therefore, it became imperative for the IBBI to file an instant appeal against the NCLT’s order.

NCLAT Held

The Hon’ble NCLAT observed that the tribunal did not find the cause of concern much less the grievance of the Appellant for preferring the present appeal especially when the aggrieved person has already filed the appeals.

It was held that the Appellant had nothing to do with the litigation between two parties i.e., ‘Financial Creditor’ and ‘Corporate Debtor’, in order to challenge the impugned order by which the petition filed by the Financial Creditor has been dismissed for whatever reasons.