{"id":203934,"date":"2018-10-18T11:00:19","date_gmt":"2018-10-18T05:30:19","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=203934"},"modified":"2019-02-06T13:25:14","modified_gmt":"2019-02-06T07:55:14","slug":"nclt-not-to-entertain-application-under-section-9-ib-code-before-expiry-of-10-days-from-date-of-giving-notice-under-section-81-nclat","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/10\/18\/nclt-not-to-entertain-application-under-section-9-ib-code-before-expiry-of-10-days-from-date-of-giving-notice-under-section-81-nclat\/","title":{"rendered":"NCLT not to entertain application under Section 9 I&B Code before expiry of 10 days from date of giving notice under Section 8(1): NCLAT"},"content":{"rendered":"

National Company Law Appellate Tribunal (NCLAT): <\/strong>A two-member bench comprising of Justice S.J. Mukhopadhaya, Chairperson and Justice Bansi Lal Bhat, Member (Judicial) allowed an appeal filed against an order of National Company Law Tribunal (Mumbai).<\/p>\n

The respondent preferred an application under Sections 433 and 434 of the Companies Act, 1956 before the Bombay High Court for winding up of the Corporate Debtor pertaining to a debt of Rs 21,63,359. The case was transferred pursuant to Rule 5 of the Companies (Transfer of Pending Proceedings) Rule, 2016 before National Company Law Tribunal (Mumbai). The respondent therein filed Form 5 to treat the same as an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor. By the order impugned, NCLT admitted the application, passed an order of moratorium and appointed Interim Resolution Professional. The appellant \u2013 Director of the Corporate Debtor, challenged the order on the ground that notice under Section 8(1) was issued on the same date when Form 5 was filed.<\/p>\n

The Appellate Tribunal perused Section 9 of the I&B Code and observed that an application under Section 9 preferred before the completion of 10 days from the giving of notice under Section 8(1) cannot be entertained and admitted by the Adjudicating Authority. Holding the application under Section\u00a0 9 as not maintainable on the date on which it was filed, the High Court set aside the order impugned. Resultantly, the order passed by NCLT appointing Interim Resolution Professional, declaring moratorium, freezing of account, etc. were declared illegal. The appeal was, thus, allowed. [Jaya Patel v. Gas Jeans (P) Ltd.,\u00a02018 SCC OnLine NCLAT 783<\/b><\/a>, dated 08-10-2018]<\/p>\n","protected":false},"excerpt":{"rendered":"

National Company Law Appellate Tribunal (NCLAT): A two-member bench comprising of Justice S.J. 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