Whether an application filed under Section 54C of IBC (PPIRP) shall have the precedence/priority of consideration over and above the application filed under Section 7 is filed much prior of enforcement of the amendment of the Act, 2021, against the same Corporate Debtor – Jaldhara Properties and Trading Pvt. Ltd. Vs. Sudal Industries Ltd. and Anr. – NCLAT New Delhi
Hon’ble NCLAT held that:
(i) Section 11A(4) of the Code says that the provision of this Section i.e. 11A shall not apply where an application under Section 7, 9 or 10 is filed and pending as on the date of the commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2021. Meaning thereby, if the application under Section 7, 9 or 10 is already filed and then the Act of 2021 came into being then the applicant filing the application under Section 54C cannot take the help of this Section.
(ii) The rigours of Section 11A(4) is squarely applied to the controversy at hand and hence the Tribunal has committed a patent error in taking up the application under Section 54C of the Code over and above the application filed much earlier under Section 7 of the Code and decided the same.
