Case Note & Summary
The appeal was filed against an order dated 10.04.2026 passed in I.A. No.289 of 2017 by the Adjudicating Authority, which dismissed the application concerning an ex-parte order dated 12.04.2017 admitting an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Appellant contended that the application was dismissed without considering various averments and that he was not served properly, thus not given an opportunity to present his case. The Adjudicating Authority had held that notice was issued and deemed the Appellant validly served. The Appellant's counsel argued that he had made pleadings under Section 65 of the IBC, but the Tribunal noted that the allegations did not pertain to Section 65. The Respondent's counsel pointed out that there was a pending application for liquidation from 2020, which had not been decided for over five years. The Appellant claimed he was not responsible for the delay in the liquidation application. The Tribunal concluded that there was no reason to entertain the appeal and clarified that the Appellant could file an application under Section 65 during the pendency of the proceedings. The appeal was ultimately dismissed without expressing any opinion on the merits of the allegations from either party.
Headnote
A) Insolvency Law - Section 9 Application - Dismissal of Application - Insolvency and Bankruptcy Code, 2016, Section 9 - The Adjudicating Authority dismissed the application on grounds of valid service of notice, which the Appellant contested. The Tribunal found no merit in the appeal and upheld the dismissal, allowing for future applications under Section 65 during ongoing proceedings. Held that the appeal was dismissed (Paras 2-8).
Issue of Consideration
Whether the appeal against the dismissal of the application under Section 9 of the IBC should be entertained.
Final Decision
The Tribunal dismissed the appeal, finding no merit in the Appellant's claims regarding improper service and the allegations under Section 65 of the IBC. The Tribunal clarified that the Appellant could file an application under Section 65 during the ongoing proceedings.
Law Points
- Insolvency proceedings
- Section 9 application
- ex-parte order
- Section 65 of IBC
- service of notice
