Growthways Trading Pvt. Ltd.

Buyer of Not Readily Realisable Assets (NRRA) cannot invoke writ jurisdiction of High Court under Article 226 for recovery where proceedings initiated by RP before selling the NRRA are already pending consideration before NCLT – Rainbow Digital Services Pvt. Ltd. & Anr. Vs. Union of India & Ors. – Delhi High Court

In this case, IRP filed IA that orders/consignments sent through Department of Posts which had been neither delivered to customers nor returned to origin, and there were also orders which had been delivered and for which COD amount stood collected. Thereafter, during Liquidation, the NRRA sold to Buyer.
Writ petition filed by buyer was dismissed by Single Judge Bench of High Court holding that it was not open for the Petitioner to invoke the jurisdiction of this Court under Article 226 of the Constitution of the India for recovery of outstanding dues, as the proceedings in respect of the same are already pending consideration before the NCLT.
In LPA, Division Bench dismissed the petition.

Buyer of Not Readily Realisable Assets (NRRA) cannot invoke writ jurisdiction of High Court under Article 226 for recovery where proceedings initiated by RP before selling the NRRA are already pending consideration before NCLT – Rainbow Digital Services Pvt. Ltd. & Anr. Vs. Union of India & Ors. – Delhi High Court Read Post »

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