Tribunals and CommissionsFull Bench(2021) 12 NCLAT CK 0001

Kiran Shah RP for KSL and Industries Ltd vs Enforcement Directorate, Kolkata

National Company Law Appellate Tribunal · Decided on 1 December 2021

HON’BLE JUDGES
Ashok Bhushan, Chairperson · Jarat Kumar Jain, Member (J) · Dr. Alok Srivastava, Member (T)
RESULT
Dismissed
CASE NUMBER
Contempt Case (AT) No.32 of 2021 in Company Appeal (AT) (Ins) No.817 of 2021

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Judgment

4 paragraphs · 283 words

Heard Mr. Ramji Srinivasan, learned Senior Counsel for the Appellant and Mr. Zoheb Hossain appearing for the Respondent Department. This Application has been filed alleging wilful disobedience of the interim Order dated 25.10.2021 passed in Company Appeal (AT) (Ins) No.817 of 2021. Company Appeal 817 of 2021 was filed against the Order of Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench) dated 31st December, 2020, through RP Kiran Shah. RP has filed an Application to quash and set aside the attachment of the property of the Corporate Debtor by Enforcement Directorate made vide Order dated 08.05.2019. The Application was rejected against which this Appeal No.817 of 2021 has been filed.

This Tribunal while entertaining the Appeal, has stayed the Impugned Order. The grievance of learned Counsel for the Applicant is that even after interim Order dated 25.10.2021, officials of the Enforcement Directorate went to the property and on 11th November, 2021 asked the sub-lessees to pay amount or rent to the Enforcement Department. He submits that this amounts to contempt of wilful disobedience of the Order.

The Interim Order passed by this Tribunal on 25.10.2021 cannot be read to mean that this Court has stayed the attachment Order dated 08.05.2019. The attachment Order still subsisting, we don't find the action of the Respondent wilful disobedience of the Order dated 25.10.2021. Learned Senior Counsel Mr. Ramji Srinivasan submits that the attachment was wholly illegal, which issues have been raised and pending in Appeal. We express no opinion on the submissions which have been made on merits which are to be looked into in the Appeal itself.

In view of the above, we find no reason to continue with these proceedings. Contempt Application is dismissed.