The Insolvency And Bankruptcy Code, 2021

1. The proceedings in appeal before the National Company Law Appellate Tribunal against the order of the National Company Law Tribunal admitting the application under Section 7 of the Insolvency and Bankruptcy Code 2016 are still pending. On 26 February 2021, the appeal was posted for admission on 19 March 2021.

2. Mr Jaideep Gupta, learned senior counsel appearing on behalf of the appellants states that the next date of listing before the NCLAT is 29 April 2021. However, the appellants are aggrieved by the directions of the NCLAT to the effect that (i) the Interim Resolution Professional shall continue to run the Corporate Debtor as a going concern with the assistance of the erstwhile Management; and (ii) the constitution of the Committee of Creditors has been stayed in the meantime.

3. Mr Jaideep Gupta submitted that having regard to the time bound scheme which has been enunciated in the statutory provisions of the IBC, such a direction would virtually bring the resolution process to a standstill and that as late as 2019 there is an admission on the part of the Corporate Debtor of the liability owed. Since the proceedings are pending before the NCLAT, we are not inquiring into the correctness of the above submissions, particularly in the absence of the respondents.

4. The NCLAT is requested to take up the appeal for expeditious hearing on the next date and if due to the exigency of work, it becomes necessary to adjourn the hearing, the application for vacating the stay shall be taken up peremptorily.

5. The appeal is accordingly disposed of.

6. Pending applications, if any, stand disposed of.

[Dr Dhananjaya Y Chandrachud]

[M R Shah]

New Delhi;

April 16, 2021