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Judgment
ORDER
The Appellant-in-person, who was the Resolution Professional of MQ Networks Pvt. Ltd. had earlier approached before this Tribunal, by filing Comp App (AT) (CH) (Ins) No.412/2025, wherein he had questioned the propriety of the impugned order therein, dated 07.07.2025, passed by the Learned NCLT, Chennai Bench – II, in IA(IBC)/917/CHE/2025 in CP(IB)/188/CHE/2023. He had contended therein that, since the impugned order suffers from the apparent vices of non-compliance of the Principles of Natural Justice, and because of the fact that the order would be having severe consequences, he was required to be heard before passing of any order, and he had further contended that the procedure adopted by the Learned Tribunal was in violation of the provisions contained under Section 27 of the I & B Code, 2016. While considering the gravamen of the aforesaid argument as it was then raised by the Appellant-in-person, we have rendered the following judgment in the aforesaid Company Appeal on 18.09.2025, and we have passed the following directions: -
“10.In these peculiar facts and circumstances, without carving out as a precedent, we direct the Learned Adjudicating Authority, to discharge the onus of formulating an Agenda for consideration of replacement of Resolution Professional on its own, in the light of the allegations levelled in the application being IA(IBC)/917/CHE/2025 and to direct it to be placed before the CoC for its consideration in the light of the provisions contained under Section 27(2) of the 1 & B Code, 2016. It is hoped and trusted that the Learned Adjudicating Authority, will act upon the aforesaid directions while exercising its inherent powers by formulating an Agenda within a period of two weeks from the date of the uploading of this order, and within two weeks thereafter, the CoC is to meet and consider the agenda in the light of the pleadings in IA(IBC)/917/CHE/2025. Subject to the above, the impugned order dated 07.07.2025, so far it relates to the order passed on IA(IBC)/917/CHE/2025, would stand quashed, leaving all options to the Learned Adjudicating Authority to take action, as directed above to satisfy the spirit of Section 27 of the 1 & B Code, 2016. Subject to the above exceptions, the Company Appeal (AT) (CH) (Ins) No.412/2025 would stand allowed, limited to the restrictions observed above. All Interlocutory Applications would stand allowed”.
In a nutshell, the direction which has been given by us in our previous order was that the Learned Tribunal was to reconsider the issue and take an appropriate decision after providing an opportunity of hearing to the Appellant in order to ensure that the action, which has been contemplated under law are intended to be taken, satisfies the spirit of provisions contained under Section 27 of the I & B Code, 2016. On the revival of the proceedings, as a consequence of the Judgment passed by us on 18.09.2025, the matter was taken up before the Learned NCLT, Chennai Bench, consequent to which, taking into consideration the implications of para 10 of the Judgment dated 18.09.2025, rendered by us in the aforesaid Company Appeal, the Learned Tribunal has passed the following orders:-
“In compliance with directions of Hon'ble NCLAT, we direct the CoC to meet and consider the agenda of replacement of RP within 2 weeks in the light of the pleadings in IA 917 of 2025 after following the due process under section 27(2) of IBC. CoC is directed to submit the report within 2 weeks. The present Application is kept in abeyance till the above matter is decided”.
The nature of the direction which has been issued by the Learned Tribunal is rather in compliance of the earlier judgment/directions, that was passed by us to ensure the compliance of Section 27 of the I & B Code, 2016, whereby he has called for a report from the CoC prior to taking any action. The order which has been passed by the Learned Tribunal on 23.09.2025, since it is in league with the order, which was solicited by the Appellant himself before us, on the pretext that the earlier action taken against him is in violation of the Principles of Natural Justice and in violation of the terms and conditions thus contained under Section 27 of the I & B Code, 2016. The impugned order which is now the subject matter of challenge has been rendered by the Learned NCLT, in furtherance of compliance of Section 27 of I & B Code, 2016, proceeding to take an action in accordance with the procedure contemplated under law. Resorting to the process contemplated under law, before the purposes to take an action against the Appellant is yet to be adjudicated by the Learned Tribunal and that itself cannot be a cause to file a Company Appeal against such a nature of order where there is no final decision and the decision is yet to be taken. Hence it does not call for any interference in the exercise of our Appellate Jurisdiction, as it will amount to venturing into the decision-making process, which has been adopted by the Learned Adjudicating Authority in pursuance to the directions given by us in the earlier Judgment that was rendered by us on 18.09.2025. Thus, the Company Appeal lacks merit and the same is accordingly dismissed. All pending Interlocutory Applications would stand closed.