Case Note & Summary
The appeal was filed by Alok Industries Ltd. against an order of the Adjudicating Authority that required the resolution professional to appear in contempt proceedings initiated by workmen after the implementation of the resolution plan. The appellant contended that all dues to the workmen had been fully paid under the resolution plan and that the contempt application was misconceived. The Adjudicating Authority had previously ordered the resolution professional to explain the situation, which the appellant argued was unnecessary. However, the court found that the resolution professional had a duty to clarify the matter, especially since he was also the Chairman of the Monitoring Committee. Consequently, the appeal was dismissed for lack of merit. Additionally, the court noted that the contempt application had been pending for nearly four years and directed the Adjudicating Authority to expedite its hearing and resolve it within two months.
Headnote
A) Company Law - Contempt Proceedings - Impleading of Resolution Professional - Insolvency and Bankruptcy Code, 2016 - The appeal challenged the impleading of the resolution professional in contempt proceedings initiated by workmen after the resolution plan was implemented. The court held that the resolution professional has a duty to explain the matter before the Adjudicating Authority, thus dismissing the appeal (Paras 1-3). B) Company Law - Expedited Hearing - Insolvency and Bankruptcy Code, 2016 - The court directed the Adjudicating Authority to expedite the hearing of the pending contempt application, emphasizing the need for timely resolution of disputes arising from the implementation of the resolution plan (Paras 4-5).
Issue of Consideration
Whether the resolution professional should be impleaded in the contempt application filed by workmen.
Final Decision
The appeal was dismissed, and the court directed the Adjudicating Authority to expedite the hearing of the contempt application and dispose of it within two months.
Law Points
- Contempt proceedings
- resolution plan implementation
- duty of resolution professional
