The Aryavarth Express
Agency (New Delhi): The National Company Law Appellate Tribunal (NCLAT), in its latest order, has stayed the Corporate Insolvency Resolution Process (CIRP) against Sporta Technologies Pvt. Ltd. The stay order was issued in the case of Bhavit Sheth vs. Madan Bajrang Lal Vaishnawa, IRP of Sporta Technologies Pvt. Ltd. & Anr. (Company Appeal (AT) (Ins.) No.328 of 2024), presided over by a bench comprising Justice Ashok Bhushan, Barun Mitra, and Arun Baroka.
The counsel for the appellant, Bhavit Sheth, argued that the application filed by the Operational Creditor was barred under section 10A, and an application for amendment had been rejected. The Adjudicating Authority, however, did not consider the 10A bar in the impugned order.
In response, the counsel for the respondent contended that after filing the Section 9 application, a fresh notice under Section 8 was issued on 23.01.2023. Additionally, an application for withdrawal of the Section 9 petition was filed to enable the filing of a fresh application. This submission was noted by the Tribunal for further scrutiny.
The NCLAT issued notice to the respondents and granted a week’s time for the respondent to file an Additional Affidavit. The appeal is listed for a hearing on 23.02.2024. Until the next hearing date, the Tribunal has ordered a stay on the impugned order, and no steps related to the CIRP will be taken by the IRP.
This order highlights the complexities involved in insolvency proceedings and the role of the NCLAT in ensuring a fair and just process. The stay on the CIRP order has temporarily halted the insolvency resolution process for Sporta Technologies, with the next course of action pending the upcoming hearing.