Airport Authority of India being a statutory body created under Airport Authority of India Act, 1944, does not come under the definition of ‘Corporate Person’ u/s 3(7) of IBC | A single application against two different Corporate Debtors is not maintainable | Issues pertaining to non-payment for services rendered cannot be addressed through the initiation of insolvency proceedings under IBC – Akash Electrotek Engineers Pvt. Ltd. v. NCC Ltd. – NCLT Hyderabad Bench
NCLT Hyderabad Bench held that:
(i) Airport Authority of India being a statutory body created under Airport Authority of India Act, 1944, does not come under the definition of ‘corporate person’ under Section 3(7) of IBC.
(ii) A single application against two different Corporate Debtors is not maintainable. Without specifying who actually is responsible for the debt incurred, the Application is rendered ambiguous and thus liable for rejection.
(iii) Moreover, it is essential to acknowledge that the principal objective of the Insolvency and Bankruptcy Code (IBC) is not intended to be a tool for recovering disputed debts. Instead, its primary purpose is to facilitate the resolution of insolvency for corporate entities. Issues pertaining to non-payment for services rendered cannot be addressed through the initiation of insolvency proceedings under the IBC.