Shivani Gadhavi
Published On: January 27, 2022 at 15:30 IST
The Supreme Court of India on January 21, 2022 gave its permission to an operational creditor of a company who challenged an Order of the National Company Law Appellate Tribunal (NCLAT) as it did not entertain his Plea in relation with an Order of the National Company Law Tribunal.
The Supreme Court Bench of Justices A M Khanwilkar and Dinesh Maheshwari were hearing the Petition filed by operational creditor of Fourth Dimension Solutions Limited, who sought actions in regards with Respondents who owed him INR 511 crores. The NCLT had passed a resolution in this regard rejecting the Petitioner’s Appeal against the Respondents.
The Supreme Court had earlier in this regard had given its approval to the resolution passed by NCLT while the Appellant’s challenge against the resolution was ongoing in the NCLAT. The Court while giving its approval had directed the NCLAT to give a decision regarding the resolution on its own merits.
Regarding the directions of the Apex Court, the NCLAT stated that as the Supreme Court has already given its approval to the resolution and because of that it will not be able to give a decision in favor of the Appellant.
The Bench in regards with all the facts and observations stated “The consequence of the above observation is that the Appellant has been left to hang dry without any recourse to satisfy its Legitimate claims being the highest single operational creditor of Respondent with dues of approximately Rs. 511 crores owed to it.”
The Bench furthermore stated that “It is stated that some Arbitration proceedings were pending between the parties. If so, all contentions available to both sides be decided in the said proceedings on its own merits in accordance with Law.”
Also read: Growing Relevance of Arbitration in India
