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Judgment
(Hybrid Mode) Oral
Judgment: Justice Sharad Kumar Sharma (Member Judicial)
The Comp App (AT) (CH) (Ins) No.383/2022, has been preferred by the Appellant, being aggrieved against the impugned order dated 25.08.2023, that has been passed by the Learned NCLT, Chennai Bench, on IA(IBC)/635(CHE)/2023, which was preferred in IA(IBC)/176/(CHE)/2023 in CP(IBC)/233/CHE/2021. In the application, which was preferred by the Appellant by invoking the provisions contained under Section 60(5) of the Code to be read with Rule 11 of the NCLT Rules. The Appellant had, prior to the passing of the order for liquidation, had prayed for the grant of the following reliefs: -
“VI. RELIEF (S) SOUGHT:
In the above circumstances, the Applicants / Suspended Directors humbly pray that this Hon'ble Tribunal for the following reliefs:
a. To order closure of liquidation proceedings by permanent stay of the liquidation proceedings releasing the Corporate Debtor from the rigours of liquidation.
b. To grant such other further reliefs as this Hon'ble Tribunal may deem fit considering the facts and circumstances of the case and thus render justice;”
There had been multiple grounds, which have been taken by the Appellant for the purposes of the grant of the relief that, was prayed in the said IA during the pendency of the proceedings and prior to the passing of the order of liquidation. But the said grounds taken therein for staying the liquidation process, will stand merged as soon as the said IA stood rejected by an order passed on 25.08.2023 and the ultimately with the passing of order of liquidation. The issues pertaining to the grant of relief to the said IA pertaining to nature of relief prayed for, that could have been the subject matter of consideration had the cause in the instant Company Appeal survived, and the final liquidation order was not there.
Admittedly, prior to the order of 28.05.2023, there was already a liquidation order that was passed on 06.03.2023, which was challenged by the Appellant in the Comp App (AT) (CH) (Ins) No.209/2023, which had been dismissed by this Tribunal, by an order dated 21.07.2023, which has attained finality and not even that as a consequences of the finalisation of the liquidation order, the auction has proceeded with and the sale of assets has already taken thereafter, and the sale has also been confirmed, but we are not making any remarks at this stage, so far as the auction or consequences, which has followed to the auction that, is to be considered on its own merits at the later stage in the Comp App (AT) (CH) (Ins) No.141/2022, which is pending consideration.
So far as the instant Company Appeal is concerned, which is arising out of an order which was being sought by the Appellant during the pendency of the proceedings for staying of the liquidation process, we are of the opinion that as soon as the Appellant’s cause, because as soon as the liquidation order has attained finality with the dismissal of the Comp App (AT) (CH) (Ins) No.209/2023, by an order passed by this Tribunal on 21.07.2023. For all practical purposes, the Interlocutory Application that was preferred by the Appellant, being IA(IBC)/635(CHE)/2023, loses its judicial existence to be considered on merits at this stage.
Hence, owing to the fact that the liquidation has now attained finality, now there could not be any Interlocutory Order praying for staying of the liquidation process, as it was prayed for by the Appellant in IA(IBC)/635(CHE)/2023. Hence, for all practical purposes, the Comp App (AT) (CH) (Ins) No.383/2023 loses its significance and the same is accordingly dismissed.