Case Note & Summary
The appeal was filed by siblings of a suspended director of a corporate debtor against the liquidator's petition for attachment of property under Section 66 of the Insolvency and Bankruptcy Code, 2016. The appellants argued that they were not made parties to the original petition or the execution proceedings, and that the property in question belonged to their deceased father, which had devolved equally among them after his death in 2014. They further claimed that a partition in 2025 excluded the suspended director from any share in the property. The Tribunal noted that the appellants had the right to be heard and participate in the proceedings. It refrained from delving into the merits of the case at this stage and directed the Adjudicating Authority to address the appellants' contentions before proceeding with execution. The appeal was disposed of without costs, leaving all issues open for future determination.
Headnote
A) Insolvency Law - Impleading in Attachment Proceedings - Right to Participate - Insolvency and Bankruptcy Code, 2016, Section 66 - The appellants, siblings of a suspended director, contended they were not made parties to the petition for attachment of property. The Tribunal held that the appellants could participate in the proceedings and raise their contentions, leaving the merits of the case open for future consideration (Paras 1-4).
Issue of Consideration
Whether the appellants should be impleaded in the pending petition for attachment of property.
Final Decision
The Tribunal dismissed the appeal, allowing the appellants to participate in the proceedings and leaving all issues open for future determination.
Law Points
- Impleading
- Attachment Proceedings
- Section 66
- Insolvency and Bankruptcy Code
- 2016
