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Judgment
17.04.2025 : Heard counsel for the appellant, learned counsel appearing for Respondent No. 4 and learned counsel for the UCO Bank as well as the Resolution Professional.
This appeal has been filed against an order dated 26.03.2025 passed by the adjudicating authority in I.A. No. 1240/ND/2025. The appeal has been filed by the appellant questioning the order to the limited extent that it has not continued the interim order dated 17.03.2025 which was already passed by the adjudicating authority in the same I.A. No. 1240/ND/2025. The order indicates that adjudicating authority itself has fixed 02.04.2025 for arguments on maintainability.
We have informed that arguments on maintainability has already been concluded and parties have been asked to file their Written Submissions. The interim order which was passed by the adjudicating authority on 17.03.2025 was only to the effect that CoC shall not proceed with the challenge mechanism during pendency of the application.
Learned Counsel for the respondent has also raised the issue that appellant is no more eligible in view of consortium partner having exited and the CoC is already considering and voting is in process on the said issue, the eligibility of Respondent No. 3 which was earlier negated has now been accepted by the CoC, which is a challenge by the appellant before the adjudicating authority on I.A. No. 1240/2025.
We are of the view that in view of the facts of the present case, further proceeding with challenge mechanism can take place after decision is taken on the maintainability of the application. Learned counsel for Respondent No. 3 submits that eligibility of the Respondent No. 3 has not yet been heard by the adjudicating authority.
Be that as it may, we are of the view that the interim order 17.03.2025 that CoC may not proceed with the challenge mechanism ought to have been continued till the next date when the adjudicating authority was hearing the matter now the matter has been fixed for 23.04.2025, we are of the view that till 23.04.2025 the interim protection shall continue.
We, however, make it clear that further proceeding shall take place in pursuance of the order passed by the adjudicating authority in the pending application. It goes without saying that it shall be open for the adjudicating authority to pass any order including orders varying on modifying or continuing the interim order.
We make it clear that we have not entered into the merits of the issues and we are not making any observations regarding merits of the case of both the parties.
Appeal disposed of accordingly.