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Judgment
O R D E R
Heard learned counsel for the Appellant. This Appeal has been filed by Suspended Director of the Corporate Debtor challenging order dated 22.09.2023 by which order the Adjudicating Authority has ordered for liquidation. The Appellant who is a Suspended Director aggrieved by the order has come up in this Appeal. Learned counsel for the Appellant submits that grievance of the Appellant is this that he has not been heard nor any notice was issued to the Appellant before passing the order on the liquidation application, which was filed by the Resolution Professional for liquidation.
The Adjudicating Authority in Para 20 of the order has made following observations:
“20.No circumstances were made out in the application whereby the Applicant brings out circumstances for recalling the order, more particularly, when the Suspended Directors were part Cont’d…/ and parcel of the CoC and were attending the CoC meetings including the meeting in which necessary resolution seeking liquidation of the Corporate Debtor was passed. It is also seen from page no. 13, para no. 15 that the Applicant herein was well aware of the reasons why the Resolution Plan was rejected by the CoC. As such in our view, the Suspended Management was in full know of the facts relating to the CIRP and its outcome.”
The Adjudicating Authority has rightly observed that the Suspended Directors were part and parcel of the CoC and when resolution was taken for liquidation, Suspended Directors were well aware of the facts and the application for liquidation is in accordance with the scheme of I&B Code.
We are of the view that in the application which was filed by the liquidation by the Resolution Professional, the Appellant who are Suspended Director were not required to be noticed nor they are necessary party to the said liquidation application to oppose liquidation. Liquidation process commences on resolution passed by the CoC deciding to liquidate the Corporate Debtor as per the scheme of IBC.
We are of the view that no error has been committed by the Adjudicating Authority in dismissing the application filed by the Appellant praying for recall of the order dated 24.04.2023 by which the Adjudicating Authority has directed for liquidation of the Corporate Debtor. We are of the view that the grounds which were sought to be raised by the Suspended Director were not ground on which recall could be granted. We find no merit in the Appeal. Appeal is dismissed.