In application u/s 7 financial creditor and corporate debtor alone are necessary parties and no third party is contemplated
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- Last Updated on 10 September, 2021
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Case details: Vekas Kumar Garg v. DMI Finance (P.) Ltd. - [2021] 129 taxmann.com 391 (NCLAT- New Delhi)
Judiciary and Counsel Details
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- Justice Bansi Lal Bhat, Acting Chairperson and Dr. Ashok Kumar Mishra, Technical Member.
- Dhruv Gupta, Ms. Preeti Kashyap and Ankit Sharma, Advs. for the Appellant.
Facts of the Case
In this instant case, the CIRP under section 7 was started against the corporate debtor by Adjudicating Authority/NCLT. The Appellant/Resolution Professional of the corporate debtor filed an application for his impleadment as a necessary party.
NCLT Held
However, the NCLT rejected the appellant’s application on the ground that the appellant was not a necessary party to proceedings as financial creditor and corporate debtor alone were a necessary party and Adjudicating Authority was, at the pre-admission stage, only required to satisfy that there was a financial debt in respect whereof corporate debtor has committed a default warranting triggering of CIRP; no third party intervention was contemplated. Therefore, there was no legal infirmity in the impugned order passed by Adjudicating Authority
Case Review
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- DMI Finance (P.) Ltd. v. Abloom Infotech (P.) Ltd. [2021] 129 taxmann.com 390 (NCLT – New Delhi) (para 5) affirmed
List of Cases Referred to
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- Dr. Vishnu Kumar Agarwal v. Piramal Enterprises Ltd. [2019] 101 taxmann.com 464/151 SCL 555 (NCL – AT) (para 2).
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