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Judgment
ORDER
In the instant Comp. App. (AT)(CH)(Ins) No.79 of 2024 heard Mr. P.H. Arvindh Pandian, Learned Senior Counsel appearing for the 1st Respondent/Petitioner’ in IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021 on the file of the ‘Adjudicating Authority’/National Company Law Tribunal, Special Bench Court-1, Chennai.
It comes to be known from records that on 30.01.2024 in IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021, the ‘Adjudicating Authority/National Company Law Tribunal, Special Bench Court-I, Chennai, had directed the ‘Petitioner/1st Respondent' in IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021, to implead the ‘Successful Auction Purchaser/Appellant’ as one of the ‘Respondents’ to the main IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021.
Admittedly, the ‘Appellant/Successful Auction Purchaser’ (Proposed Impleading Party) was not arrayed as one of the parties and in this regard, no Application/Petition for impleadment was filed on behalf of the ‘1st Respondent/Petitioner’ in IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021, before the ‘Adjudicating Authority/Tribunal’.
In this connection, this ‘Tribunal’, makes a pertinent mention that all pleadings exchanged prior to and non-impleadment, to overcome direction issued by the ‘Adjudicating Authority/Tribunal’, in regard to impleadment shall not be anyway to be construed that the concerned party had an effective and adequate opportunity to putforth its views/grievances, in terms of the ‘principles of natural justice’.
At this stage, this ‘Tribunal’, is of the considered view that even though the ‘Adjudicating Authority/Tribunal’ had on 09.02.2024 in IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021 had observed among other things “Liquidator is permitted to start e-auction process afresh allowing the ‘Applicant/Successful Bidder’ and other persons to participate in the process. It was also submitted that the mistake was bona fide and he is willing to allow the ‘Successful Bidder’, to participate with the amount already ‘furnished/deposited’ and ultimately, proceeded to pass an order, that there will be a ‘fresh auction’ and the ‘Applicant, Successful Bidder’ and other persons would be permitted to participate in the ‘fresh e-auction’ is liable to be set aside, to secure the ‘ends of justice’ because of the latent and patent fact that the ‘Appellant/Proposed Impleading Party, who was directed earlier by the ‘Adjudicating Authority/Tribunal’ through its order dated 30.01.2024 to be impleaded as the ‘Appellant/Successful Bidder’, as one of the ‘Respondents’, was not added as a party as one of the Respondents, this ‘Tribunal’ is of the considered view that the said omission is a vital one and goes to the root of the matter and affects the impugned order dated 30.01.2024 in IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021 on the file of the ‘Adjudicating Authority/National Company Law Tribunal, Division Bench Court-I, Chennai. Because of not being arrayed as one of the parties (as one of the Respondents) on account of the fact that the 1st Respondent/Petitioner in IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021, had not filed necessary IA to implead the ‘Appellant’, consequently it infers, it had no opportunity to file any ‘Reply’ to IA (IBC) No.346 of 2024 in CP(IB) No.61/CHE/2021and that the ‘Appellant’ was seriously prejudiced because of not putting forth the ‘Objections/Reply/Response’ as the case may be.
Viewed in the above perspective, this ‘Tribunal’, is perforced to interfere with the ‘Impugned Order’ dated 09.02.2024 in IA (IBC) No.346 of 2024 in CP(IBC)No.61/CHE/2021passed by the ‘Adjudicating Authority/ National Company Law Tribunal, Division Bench Court-I, Chennai, and sets aside the same, for meeting the ‘ends of justice’. Accordingly, the instant ‘Appeal’ succeeds.
In fine, the instant ‘Comp. Appeal’ No. (AT)(CH)(INS) No.79 of 2024 is allowed. The ‘Impugned Order’ dated 09.02.2024 in I.A. (IBC) No. 346 of 2024 in CP (1BC) No. 61/CHE/2021 set aside by this ‘Tribunal’ for the reasons assigned in this ‘Appeal’. The matter is directed to be ‘remitted back’ to the ‘Adjudicating Authority/ National Company Law Tribunal, Division Bench Court-I, Chennai, for ‘Denovo’ consideration, whereby and whereunder, the ‘Petitioner’ in I.A. (IBC) No. 346 of 2024 in CP (IBC) No. 61/CHE/2021 and the, 1st Respondent in the ‘instant Appeal’ is required to take necessary steps in filing an ‘Application’ to implead the ‘Appellant/Successful Bidder’, as one of the Respondents, to the main I.A. (IBC) No. 346 of 2024 in CP (IBC) No. 61/CHE/2021.
In the event of the 1st Respondent/Petitioner’ filing an ‘interlocutory Application’ for impleading the party (viz. the Appellant as one of the Respondents to the I.A. (IBC) No. 346 of 2024 in CP (1BC) No. 61/CHE/2021 the ‘Adjudicating Authority/Tribunal’ shall take it on record and ofcourse, upon scrutiny and assigning number (if it is otherwise in order) is to pass a ‘reasoned order’ on merits in qualitative and quantitative terms after affording ‘opportunity of hearing’ to respective parties. No wonder, the said ‘fresh order’ is to be passed in a fair, just, ‘reasoned’ and in a dispassionate manner of course, ‘uninfluenced’ and ‘untrammelled’ with any of the observations made by this ‘Tribunal’ in this ‘Appeal’.
Before parting with the case, this ‘Tribunal’, makes it quite clear that it is not traversed or dealt with the merits of the matter except to go into the aspect of non-impleadment of the ‘Appellant/Successful Bidder’ as one of the parties by not filing the ‘interlocutory Application’ despite the said application having directed to be filed by the ‘Adjudicating Authority’ by issuing necessary directions to the 1st Respondent/Petitioner’ in I.A. (IBC) No. 346 of 2024 in CP (1BC) No. 61/CHE/2021.
The 1st Respondent/Petitioner’ in I.A. (IBC) No. 346 of 2024 in CP (1BC) No. 61/CHE/2021is required to file an ‘interlocutory Application’ seeking to implead the ‘Appellant/Successful Bidder as one of the proposed impleadment parties within three working days beginning from today.
Considering the fact that this ‘Tribunal’ has allowed the instant ‘Appeal’ (At)(CH)(Ins) No.79 of 2024 by setting aside the ‘Impugned Order’ made in I.A. (IBC) No. 346 of 2024 in CP (IBC) No. 61/CHE/2021 on the fille of the ‘Adjudicating Authority/National Company Law Tribunal, Special Bench Court-I, Chennai, the 2nd Respondent/Liquidator’ is left with no option except to postpone/defer the ‘E-auction’ to any fresh date of course, subject to the orders to be passed by the ‘Adjudicating Authority/Tribunal’ in the subject matter in issue upon ‘Hearing’ respective sides, on ‘merits of the matter’ as it deems fit and proper.
Connected pending IAs, if any, are closed.