INDIABULLS ASSET RECONSTRUCTION COMPANY LIMITED Vs. RAM KISHORE ARORA

JUDGEMENT

(1.) Civil Appeal No. 5941 of 2022 and Civil Appeal No. 1925 of 2023 These two appeals (Civil Appeal Nos. 5941 of 2022 and 1925 of 2023) filed by the Union Bank of India and Indiabulls Asset Reconstruction Company Ltd. respectively, being the financial creditors of the corporate debtor - Supertech Ltd., are directed against the order dtd. 10/6/2022 passed by the National Company Law Appellate Tribunal, Principal Bench, New Delhi,(Hereinafter referred to as 'the Appellate Tribunal' or 'NCLAT.'), in Company Appeal (AT) (Ins.) No. 406 of 2022. By the order impugned, the Appellate Tribunal, while dealing with an appeal against the order dtd. 25/3/2022 passed by the National Company Law Tribunal, New Delhi - Court VI(Hereinafter referred to as 'the Tribunal' or 'NCLT'.), in admitting an application under Sec. 7 of the Insolvency and Bankruptcy Code, 2016(Hereinafter referred to as 'IBC' or 'the Code'.), has issued a slew of directions which practically have the effect of converting the corporate insolvency resolution process(For short, 'CIRP'.) in question into a "project-wise insolvency resolution process" inasmuch as the constitution of committee of creditors(For short, 'CoC'.) has been restricted only to one project named "Eco Village-II" of the corporate debtor, who is dealing in real estate and has several ongoing projects.

(2.) The other appeal, being Civil Appeal No. 1975 of 2023, is preferred by Assets and Care Reconstruction Ltd., a beneficiary of corporate guarantee, challenging the order dtd. 10/1/2023 whereby, the Appellate Tribunal directed the interim resolution professional(For short, 'IRP'.) to call a meeting of only those financial institutions who have lent money to the corporate debtor before finalisation of the term sheet.

(3.) Having regard to myriad issues involved and the fact that final disposal of the appeals is likely to take time, we have heard the learned counsel for the parties as regards interim relief and/or interim arrangement, particularly after taking note of the fact that in terms of the direction of NCLAT, certain offers were received from the prospective resolution applicants. Those offers were directed to be placed before NCLAT and we requested the NCLAT to keep further proceedings in abeyance and await further orders of this Court. Thereafter, we heard the learned counsel for the parties at substantial length as regards the propositions towards interim relief/interim arrangement in view of the typical issues involved in these matters.