Brief about decision:

after admission of the application for initiation of Corporate Insolvency Resolution, against the appellant, the association of workmen have no role to play except their members, individually may file claim, the Insolvency Resolution Professional, who is required to proceed in accordance with the provisions of I & B Code.

Facts:

This appeal has been preferred by the appellant against the order dated 30th August, 2017 passed by the Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench in Case No. I.A. No. 102/17 in CP (IB) No. 01/BB/17. The main plea taken is that an association of workmen have been impleaded in the case under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for short ‘I&B Code’), which is not permissible.

NCLAT Verdict:

Having regard to the fact that after the impugned order being passed, the Adjudicating Authority has already admitted the application under Section 9, as informed by the learned counsel for the appellant, we are not inclined to interfere with the impugned order. However, we are of the view that after admission of the application for initiation of Corporate Insolvency Resolution, against the appellant, the association of workmen have no role to play except their members, individually may file claim, the Insolvency Resolution Professional, who is required to proceed in accordance with the provisions of I & B Code.

The appeal stands disposed of with the aforesaid observations. However, this order will not come in the way of the aggrieved person to challenge the order of admission of the application under Section 9 of the I & B Code. No costs.

Case Reference: NCLAT(New Delhi) in case of Flacon Tyres Ltd. Vs. Belthangady Taluk Rubber GrowersMarketing & Processing Co-op. Society Ltd. & Anr. , Company Appeal (AT) (Insolvency) No. 206 of 2017, Date of Order: 09.10.2017.

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