Case Note & Summary
The appeal was filed by Sarita Patni, the Personal Guarantor of Ankit Metal & Power Ltd., against an order of the National Company Law Tribunal, Kolkata, regarding the initiation of Corporate Insolvency Resolution Process (CIRP). The Appellant argued that the Resolution Professional filed an application beyond the statutory period without seeking condonation of delay and that she was not made a party to the application, which prevented her from defending herself. The Appellant also claimed that the Adjudicating Authority failed to consider her reply and that there was a clerical error in a communication regarding her status as a guarantor for UIC Udyog Limited. The Respondents denied these allegations, asserting that the Appellant was given multiple opportunities to respond and that the proceedings were conducted fairly. The Tribunal found that the Appellant had not disputed the existence of debt or default and that the Adjudicating Authority had acted within its jurisdiction. Ultimately, the Tribunal dismissed the appeal, affirming the Adjudicating Authority's decision and noting that the Appellant's procedural objections were without merit.
Headnote
A) Insolvency Law - Personal Guarantee - Compliance with Statutory Timelines - Insolvency and Bankruptcy Code, 2016, Section 99(1) - The Appellant contended that the Resolution Professional filed an application beyond the statutory period without seeking condonation of delay, which was a contravention of the Code. The Tribunal held that the Adjudicating Authority had provided multiple opportunities to the Appellant to file a reply, and thus the appeal was dismissed (Paras 32-49).
Issue of Consideration
Whether the Appellant was denied natural justice and whether the Adjudicating Authority properly considered the Appellant's reply.
Final Decision
The Tribunal dismissed the appeal, affirming the Adjudicating Authority's order and finding no merit in the Appellant's claims of procedural irregularity and denial of natural justice.
Law Points
- Insolvency proceedings
- personal guarantee
- natural justice
- procedural irregularity
- statutory timelines
