Whether Authorisation for filing a petition under Section 9 of the Code before the commencement of the Code can be treated as a valid authorisation? – Tek Travels Private Limited Vs. Altius Travels Private Limited- NCLAT New Delhi

The Adjudicating Authority has dismissed the Petition filed u/s 9 of the IBC because the Authorisation to file the Petition is of 2013, whereas the Insolvency and Bankruptcy Code came into existence in 2016. The Appellant contends that the Adjudicating Authority should have granted the liberty to the Appellant to rectify the defects if any. It is also contended that neither the Code nor any Rules and Regulations made thereunder mandates the authorisation post the enactment of the I&B Code.
NCLAT set aside the order and held that the Adjudicating Authority noticed that the Authorisation was much before the commencement of the I&B Code, and only on this basis, the Application under Section 9 of the Code was rejected without allowing the applicant to rectify the mistakes, is against the statutory provision of the Code. The Adjudicating Authority has erred in dismissing the Application for want of Authorisation, without even providing an opportunity to rectify the defects in compliance with Section 9(5)(ii)(a) of the Code.

Whether Authorisation for filing a petition under Section 9 of the Code before the commencement of the Code can be treated as a valid authorisation? – Tek Travels Private Limited Vs. Altius Travels Private Limited- NCLAT New Delhi Read Post »