No appeal lies u/s 62 to SC against NCLAT order staying constitution of CoC: SC
- Blog|News|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 26 September, 2022
Latest from Taxmann
Case Details: Ashok G. Rajani v. Beacon Trusteeship Ltd. - [2022] 142 taxmann.com 465 (SC)
Judiciary and Counsel Details
-
- Indira Banerjee & J.K. Maheshwari, J.J
Facts of the Case
In the instant case, the question was placed before the Apex Court as to whether an appeal u/s 62 of IBC can be made to the Supreme Court against the NCLAT’ order which stayed the constitution of CoC so as to enable withdrawal of CIRP u/s 12A?
Supreme Court Held
The Supreme Court observed that Section 12A of the IBC clearly permits withdrawal of an application u/s 7 of the IBC that has been admitted on an application made by the applicant. The question of approval of the Committee of Creditors by the requisite percentage of votes, can only arise after the Committee of Creditors is constituted. Before the Committee of Creditors is constituted, there is no bar to withdrawal by the applicant of an application admitted u/s 7 of the IBC.
Further, the Supreme Court observed that Section 12A of the IBC enables the Adjudicating Authority to allow the withdrawal of an application admitted u/s 7, 9 or 10, on an application made by the applicant with the approval of 90% voting shares of the Committee of Creditors in such a manner as may be specified.
The Supreme Court held that the NCLAT was justified in staying the constitution of CoC and allowing the applicant to file application to NCLT u/s 12A for withdrawal of application where applicant and corporate debtor arrive at a settlement after CIRP application is allowed u/s 7, 9 or 10 of the IBC.
Further, the Adjudicating Authority (NCLT) was directed to take up the settlement application and decide the same in light of the observations made. Thus, there was no question of law which requires a determination by this Court. Accordingly, the appeal was to be dismissed.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
