PARMANAND KEWALRAMANI Vs. SANJAY KEWALRAMANI & ORS

JUDGEMENT

(1.) The present appeal arises out of the impugned judgment dated 12th July, 2018, passed by the National Company Law Appellate Tribunal [hereinafter 'NCLAT' for brevity] in Company Appeal (AT) (Insolvency) No.57 of 2018, wherein the NCLAT allowed the appeal preferred by Respondent No.1 herein and set aside the order dated 2nd Feb., 2018 passed by the National Company Law Tribunal [hereinafter 'NCLT' for brevity] in CP No. (IB) 130/7/NCLT/AHM/2017.

(2.) Brief facts giving rise to the present appeal are that the Appellant and R.Nos.2 and 3 allegedly provided loans of various amounts to R.No.4 Company herein (hereinafter referred to as "the Corporate Debtor") in the form of unsecured loans. When those unsecured loans were not repaid by the Corporate Debtor, Respondent No.2, being the holder of power of attorney of Appellant and R.No.3 herein, filed a Petition u/s 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "I&B Code") r/w Rule 4 of the Insolvency and Bankruptcy Rules, 2016 (hereinafter referred to as "I&B Rules") to commence Corporate Insolvency Resolution Process in respect of the Corporate Debtor.

(3.) Adjudicating thereupon, the NCLT passed an order dated 02.02.2018 admitting the Petition in respect of Appellant and R.No.3, but holding that the Petition in respect of R.No.2 was not maintainable as he was estopped from triggering Corporate Insolvency Resolution Process on account of contractual bar due to agreement with banker of the Corporate Debtor, in his capacity as its Director.