Ganesh Sponge Pvt. Ltd. Vs Aryan Mining & Trading Corporation Pvt. Ltd. [Company Appeal (AT) (Insolvency) Nos. 124 & 125 of 2017] - Synopsis
Team SoOLEGAL 5 May 2021
FACTS:
In this case, Ganesh Sponge Pvt. Ltd. Vs Aryan Mining & Trading Corporation Pvt. Ltd. [Company Appeal (AT) (Insolvency) Nos. 124 & 125 of 2017], the Adjudicating Authority had rejected the joint application of both the appellant and respondent to withdraw the petition. The appellant had contended that the application was deficient and that the notice under Section 8 of Insolvency Bankruptcy Code, 2016, was given by its counsel rather than the 'Operational Creditor,' and that there was an ‘existence of dispute' over the standard of goods.

DECISION OF THE COURT:  
According to the National Company Law Appellate Tribunal, the Adjudicating Authority has the authority to allow the withdrawal of the application under Sections 7, 9, or 10 of the Insolvency and Bankruptcy Code, 2016 as applicable, on the request of the appellant prior to admission, but such withdrawal is not allowed once the application has been admitted. Thus, in the absence of any illegality, NCLAT saw no reason to intervene with the Adjudicating Authority's order. The Bench had also ruled that a lawyer, Chartered Accountant, or Company Secretary, or any other individual, in the absence of any authority from the 'Operational Creditor,' and if such person does not hold any role with or in relation to the 'Operational Creditor,' cannot issue a notice under Section 8 of the Insolvency Bankruptcy Code, 2016. According to the Bench about the ‘Existence of Dispute,' quality deductions had already been made, and the remaining outstanding balance had been verified. As a result, no dispute existed as of the date of the notice. The order which was passed by the Adjudicating Authority in the application under Section 9 of Insolvency Bankruptcy Code, 2016, which was not complete and by referring to a case, Macquarie Bank Limited Vs. Uttam Galva Metallics Limited, the Bench had set aside the order.
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