NCLT dismisses application filed for defer or dismiss CIRP application on the basis of Vidarbha Judgement and levies a penalty of Rs. 1 lac – Simplex Infrastructures Ltd. Vs. Canara Bank – NCLT Kolkata Bench
January 11, 2024
Hon’ble NCLT Kolkata Bench held that:
(i) Two-Judge Bench of the Hon’ble Supreme Court in M. Suresh Kumar Reddy v. Canara Bank (2023) ibclaw.in 67 SC distinguished Vidarbha case on facts and noted that when the existence of debt and default had been proved, the NCLT is bound to admit the petition under Section 7 of the Code.
(ii) Vidarbha case could not be understood as taking a contrary position in law as opposed to Innoventive Industries [2017] ibclaw.in 02 SC case and also the case law rendered in E.S. Krishnamurthy (2021) ibclaw.in 173 SC by the Hon’ble Apex Court.
(iii) This application has been filed with an intent to derail this Tribunal from considering the Application filed by the Respondent under Section 7 of IBC This is in our view is an attempt to abuse the process of Tribunal and therefore levy a penalty of Rs. 1 Lac (Rs. One Lac only) in terms of Rule 11 of NCLT Rules 2016.
