Case Note & Summary
The Employees' Provident Fund Organization (Appellant) had filed a Company Appeal (AT) (CH) (Ins) No. 72/2024 challenging an order dated 19.01.2024 of the NCLT, Chennai, which rejected its claim on the ground that there was no amount left. The Respondent, the Liquidator of M/s. Abra Motors Pvt. Ltd., had appeared and was directed to file a counter affidavit, which was yet to be filed. Subsequently, the Appellant filed another Company Appeal being CA (AT) (CH) (Ins) No. 181/2024 challenging the Impugned Order dated 25.01.2024 passed by the NCLT, Chennai in IA/1185(CHE)/2022 in IA(IBC)/1228(CHE)/2020 in IBA/42/2020, which was filed under Section 54 of the I&B Code, 2016. The consequential effect of that order was the dissolution of the Corporate Debtor M/s. Abram Motors Pvt. Ltd. The Appellant contended that if the dissolution is permitted to proceed, it would close the door for the Appellant's claim. The Tribunal, looking at the facts and circumstances, directed that the Impugned Order of dissolution of the Corporate Debtor under Section 54 of the I&B Code, 2016 shall remain stayed until further orders.
Headnote
A) Insolvency and Bankruptcy - Dissolution - Section 54 of I&B Code, 2016 - Stay of Dissolution - The Appellant challenged the order of dissolution of the Corporate Debtor under Section 54 of the I&B Code, 2016, as it would render the pending appeal infructuous - The Tribunal held that if dissolution is permitted, it will close the door for the Appellant's claim - Directed stay of the Impugned Order dated 25.01.2024 until further orders (Paras 1-2).
Issue of Consideration
Whether the dissolution of the Corporate Debtor under Section 54 of the I&B Code, 2016 should be stayed pending the appeal challenging the rejection of the Appellant's claim.
Final Decision
The Impugned Order dated 25.01.2024 of dissolution of the Corporate Debtor under Section 54 of I&B Code, 2016 shall remain stayed until further orders.
Law Points
- Section 54 of I&B Code
- 2016
- dissolution
- stay of proceedings
- pending appeal
