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Judgment
(Hybrid Mode)
Heard Ld. Counsel for the Appellant and Ld. Counsel appearing for the dissenting financial creditor, Respondent No. 1.
This Appeal has been filed against the order passed by Adjudicating Authority dated 11/02/2026 in I.A. No 4793/ND/2024. Order passed in I.A. No 4793/ND/2024 is as follows :
“Mr. Aryan, Advocate . appeared on behalf of SRA and submitted that he could be engaged in the matter afresh, and he is not prepared to put forth his submissions. According to him, he has yet to receive the brief from the previous Counsel. Ld. Counsel for the Applicant submitted that after approval of the plan, SRA has changed three Counsels. We are unable to appreciate the conduct of the SRA. The SRA need to be conscious of the consequences of failure to implement the plan. Besides Liquidation, it has other consequences in terms of the provisions contained in the Code. Nevertheless, by way of sheer indulgence and in the interest of justice, we defer the hearing to 27.03.2026, subject to payment of the cost of Rs. 5,00,000/- to be deposited in the Prime Minister's National Relief Fund. In the meantime, the SRA would not part with any of the assets of the Corporate Debtor.”
Ld. Counsel for Appellant submitted that the request was made to the Court for adjournment because the Counsel appearing has not received the brief. It is submitted that there was only once change of Counsel and the observation that thrice the Counsel is changed, is not correct.
It is further submitted that the court has imposed the cost of Rs. 5,00,000/- which is excessive and further the order has been passed that SRA would not part with any of the assets of the Corporate Debtor.
Ld. Counsel for Financial Creditor submitted that Application was filed by the Financial Creditor, Respondent No. 1 I.A. 4793/ND/2024 and there were several other Applications which was pending consideration.
Timeline for implementation of Plan is already over. Ld. Counsel for Appellant submits that the Application is listed for consideration on 22/04/2026.
We are of the view that Application having already listed before the Adjudicating Authority, it is open for the Appellant to pray for modification of the order by which SRA was directed not to part with any of the assets of the Corporate Debtor.
In so far as the imposition of the Cost of Rs. 5,00,000/-, we are of the view that the said cost need to be reduced to 50,000/- which may be deposited within a week as directed by the impugned order.
We make it clear that we are not expressing any opinion on the merits of the claim of either of the Parties.
With the above, Appeal is disposed of.