Application By Chairman Of Monitoring Committee For CIRP Of Corporate Debtor's Debtor, Maintainable: NCLT Delhi
The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Abni Ranjan Kumar Sinha (Judicial Member) and Shri Hemant Sarangi (Technical Member), while adjudicating an application in Educomp Infrastructure & School Management Ltd. v Millenium Education Foundation, has held that a Chairman of Monitoring Committee can file and application under IBC for...
The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Abni Ranjan Kumar Sinha (Judicial Member) and Shri Hemant Sarangi (Technical Member), while adjudicating an application in Educomp Infrastructure & School Management Ltd. v Millenium Education Foundation, has held that a Chairman of Monitoring Committee can file and application under IBC for initiating Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor's debtor. The Chairman of Monitoring Committee is empowered under IBC to protect the interest of the Corporate Debtor. The order was passed on 03.06.2022.
Brief Background
Educomp Infrastructure & School Management Ltd. ("Applicant") had filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") seeking initiation of CIRP against Millenium Education Foundation ("Respondent"). The Applicant itself is undergoing Resolution Plan implementation and had thus filed the application through the Chairman of Monitoring Committee.
Issue
Whether the application being filed by the Chairman of Monitoring Committee can be considered proper in respect of IBC proceedings?
Decision Of The NCLT
The NCLT Bench observed that the Chairman of Monitoring Committee is covered under the purview of IBC by virtue of Section 2(d), which states that the provision of IBC is applicable to "such other body incorporated under any law for the time being in force, as the Central Government may, by notification, specify in this behalf". The Monitoring Committee is formed and its Chairman is appointed under the provisions of IBC. Therefore, the Chairman possesses the proper authority to take necessary steps to protect the Corporate Debtor's interest.
The Bench issued notice to the Respondent and has listed the matter for 04.07.2022.
Case Title: Educomp Infrastructure & School Management Ltd. v Millenium Education Foundation, C.P. No. (IB) 245/ND/2022.
Counsel for Applicant: Adv. Anshul Sehgal
Click Here To Read/Download OrderNational Company Law Tribunal ("NCLT")