NCLAT Delhi: Appeal against initiation of CIRP becomes infructuous, CoC initiates liquidation

The National Company Law Appellate Tribunal ("NCLAT"), in the case Mr. Rakshit Dhirajlal Doshi v IDBI Bank Limited, the Principal Bench, comprising of Judicial Member, Justice Anant Bijay Singh and the Technical Member, Mr. Barun Mitra observed while adjudicating in an appeal filed and has held that an appeal challenging the order initiating CIRP becomes infructuous if the Committee of Creditors decided to liquidate the Corporate Debtor and an application for the process of liquidation has been filed.

FACTS OF THE CASE 

The Appellant/Corporate Debtor, Doshion Private Limited had obtained financial assistance for an amount to Rs. 32.70 Crores from the IDBI Bank Ltd and the Consortium of various banks. The Respondent/Financial Creditor was a leading bank in the Consortium.

On 29.10.2015, the account of the Corporate Debtor was declared as a NonPerforming Asset. A petition was filled by the Financial Creditor after 3 years of NPA classification on 19.12.2018, under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), wherein seeking initiation of Corporate Insolvency Resolution Process initiated against the Corporate Debtor.