AI Structured Summary
Not yet generated for this judgment
Judgment
25.02.2026 - These twin appeals are preferred by a financial creditor who challenges an Order dated 14.10.2024 passed by the Adjudicating Authority in two independent proceedings initiated by the appellant against personal guarantors in C.P.(IB)/192(AHM)2024 and C.P.(IB)/193(AHM)2024 under Section 95, IBC.
Pursuant to the institution of CIRP, the Adjudicating Authority appointed an RP and required him to file a report under Section 99. The RP filed its report but filed it with a delay of 56 days. The RP, therefore, took out an application in I.A. 1446 of 2024 to take on record his report and also to condone the delay of 56 days. The Adjudicating Authority however, not only refused to condone the delay but proceeded to dismiss the petitions filed by the appellant under Section 95, IBC.
Notices were taken on the respondents, the personal guarantors, and they chose to remain ex-parte.
Heard the learned Counsel and perused the impugned Orders. We are not in agreement with the line of reasoning of the Adjudicating Authority, since for the fault of the resolution professional, the appellant/financial creditor has been penalized. Necessarily, we need to interfere with the impugned Orders of the Adjudicating Authority.
Turning to the condonation of delay in submitting the report, we find reasons to condone the same.
To conclude, this appeal is allowed and the Order of the Adjudicating Authority dated 14.10.2024 is hereby set aside and the matters are remanded back. The Adjudicating Authority is required to take on record the report of the RP and to proceed in accordance with law. No cost.