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Judgment
IA No. 2867 of 2023 – This Appeal has been filed against the order dated 17.03.2023. The appeal having been e-filed on 29.04.2023, there is a delay of 13 days in filing the Appeal. The cause shown in the affidavit is that the officials of the Appellant were involved in discussion and there was a re-emergence of Corona Virus Pandemic. Sufficient cause has been shown to condone the delay. Delay condoned.
Heard Learned Counsel for the Appellant.
This Appeal has been filed against the order dated 17.03.2023 by which order, Adjudicating Authority has rejected the application on the ground of bar u/s 10 A.
Learned Counsel for the Appellant submits that invoices were given in October 2010 and the huge default of about Rs. 4 crores have been committed.
We have heard the Learned Counsel for the Appellant and peruse the records.
In paragraph 18 of the order, the Adjudicating Authority has noted the following facts:-
“18. On the perusal of the fact in the present petition, it is to be stated that the date of default mention in the given case is 05.11.2020 and 25.11.2020. Therefore, by virtue of Section 10A of the Insolvency and Bankruptcy Code, 2016, such period is liable to be excluded for initiating Corporate Insolvency Resolution Process and hence, the present petition finds no stand.”
Both the dates 5.11.2020 and 25.11.2020 being covered within the period u/s 10A, no application u/s 9 could have been filed for the said default.
We do not find any error in the order rejecting Section 9 application. It shall, however, be open for the Appellant to take such remedy as available in law with regard to the grievance and non-payment.
Learned Counsel for the Appellant submits that proceedings were not initiated during the period when the 10A creates the bar rather proceedings were initiated subsequent to the said period. We are of the view that Section 10A creates the bar in initiating the proceedings for the default committed u/s 10A period. The mere fact that proceedings were subsequent to the said period will not save the Applicant from the bar u/s 10A.
With these observations, the Appeal is dismissed.