( Company Appeal (AT) (Insolvency) No. 287 of 2020)
The Committee of Creditors of the Corporate Debtor had agreed to the resolution plan of Royale Partners Investment Fund Limited. NCLT also agreed to the decision after an application under Section 30, 31 IBC was filed.
The appellant moved the NCLT stating that the there was deliberate delay in implementation of the Resolution Plan. The application was heard in details and order was reserved to be give.
Then The Resolution Applicant filed another Application which got a reconstituted bench.
After which, appeal was filed in the NCLAT on the 12th February order.
“Unfortunately, such a proper/traditional recourse, cemented on sound and healthy principle of judicial propriety was not resorted to.. the ‘judicial precedent’ requires that as a ‘rule of practice’, the same cannot be interfered with by the re-constituted Bench on any score. Only if the Members of the Adjudicating Authority(‘NCLT’) do not brush aside the orders passed by a ‘Coordinate Bench’ of the same Tribunal, Certainty and uniformity in ‘Law’ can be achieved and preserved in our administration of justice.”
Thus affirming that an NCLT Bench cannot act as an appellate authority.