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Judgment
O R D E R
05.12.2024 Heard Learned Counsel for the parties.
This appeal has been filed against the order dated 15.10.2024 which has been passed by National Company Law Tribunal, Bench-VI, New Delhi by which application filed by the Resolution Professional to stay the further proceeding in the arbitration against the Corporate Debtor has been allowed.
Learned Counsel for the Appellant challenging the order submits that the issue pertaining to continuance of arbitration was already decided by Adjudicating Authority on 05.12.2019 in CA No. 1750/PB/2019. He submits that the fact is that the arbitration proceeding continued thereafter for several years and the said direction was prior to change of law as has been noticed by Adjudicating Authority.
We have considered submission of Counsel for the Appellant and perused the record. The order dated CA 1750/PB/2019 on 05.12.2019 is as follows:
“ORDER
CA-1750(PB)/2019
The issue raised in the present proceedings is for continuation of arbitration proceedings initiated by M/s Fab-Tech Works & Constructions Pvt. Ltd. and there is a counter claim filed by the corporate debtor. The CoC in its tenth meeting dated 06.11.2019 has resolved for continuation of arbitration proceedings for claim and counter claim in the arbitration matter of M/s. Fab- Tech Works & Construction. The resolution passed on that date refers to earlier resolution dated 25.006.2019 which was carried by 75.62% voting share in its fifth meeting. Accordingly, CA-1750(PB)/2019 would not survive for adjudication as the CoC has permitted the continuation of the arbitration proceedings. However, we make it clear that award shall not be executed during the period of moratorium under Section 14 of the Insolvency & Bankruptcy Code.
CA-1750(PB)/2019 stands disposed of.
CA-2237(PB)/2019
There are precedents to support the prayer made in this application which have not been cited before us. Mr. Chaurasia, Ld. Counsel for the RP shall produce the same on the next date of hearing.
List on 07.01.2020.
CA-2358(PB)/2019
Reply by non applicant-respondent No. 16 is on record. Other served non applicant-respondent may file their reply with a copy in advance to the counsel for the RP within ten days with a copy in advance to the counsel opposite. The served respondent who are not represented are proceeded exparte.
List for further consideration on 07.01.2020.”
The perusal of the said order indicate that CA 1750/PB/2019 filed by the present appellant was not decided on merits. An Adjudicating Authority held that CA 1750/PB/2019 would not survive for adjudication. Thus, there was no adjudication on the said application. The submission of the Appellant that change of law shall not effect rights of the appellant also cannot be accepted. The Hon’ble Supreme Court in P. Mohan Raj Vs. Sah Brothers Ispat Pvt. Ltd. 2021 (6) SCC 218 had laid down that no proceeding can continue against the Corporate Debtor during the moratorium period. It is not disputed that moratorium is still in operation. The judgment of the Hon’ble Supreme Court is declaration of law and cannot be accepted as any change of law. We thus, do not find any merit in submission of the Appellant. There is no merit in this Appeal. Appeal is dismissed.