November 20, 2018
In the present case, the National Company Law Appellate Tribunal (NCLAT) has reiterated Supreme Court’s holding in the landmark case Innoventive Industries Ltd. Vs. ICICI Bank and Ors., whereby the Apex Court had held that once an insolvency professional is appointed to manage the Company, the erstwhile Directors who are no longer in management, obviously cannot maintain an appeal on behalf of the Company.
In the instant case, the Company being the Corporate Debtor had preferred appeal against order passed by National Company Law Tribunal, whereby the Tribunal had admitted Financial Creditor’s i.e. Union Bank of India application under Section 7 of the Insolvency and Bankruptcy Code, 2016 for appointment of the Interim Resolution Professional.
NCLAT’s order in the case can be accessed here.
While relying on Apex Court’s verdict in Innoventive Industries, the NCLAT dismissed the appeal and observed that we dismiss the appeal being not maintainable in view of decision of Hon’ble Supreme Court in “Innoventive Industries Ltd. Vs. ICICI Bank and Ors.”
 (2018)1 SCC 407