M/S WIZAMAN IMPEX PVT. LTD. versus KEDRION BIOPHARMA INC.

M/S WIZAMAN IMPEX PVT. LTD. versus KEDRION BIOPHARMA INC.

The NCLAT order insofar as it allowed the Section 9 application based on additional e-mail documents taken on record at the final stage without adequate opportunity to the corporate debtor could not be sustained; however, the e-mail documents could not be ignored merely because they were not before the NCLT and therefore the appropriate course was to set aside the NCLAT order to the extent it allowed the Section 9 application, retain the part of the order taking the documents on record, set aside the NCLT order dated 06.10.2020 and direct the NCLT to re-consider the Section 9 application taking those additional documents into account while affording the corporate debtor adequate...

Parties
Appellant / Corporate Debtor: M/S Wizaman Impex Pvt. Ltd.; Respondent / Applicant (operational Creditor): Kedrion Biopharma Inc.
Jurisdiction
India
Judgment Date
07 February 2022
Procedural Posture
Civil Appeal No. 466 of 2022 Against NCLAT Order in Company Appeal (at) (insolvency) No.981 of 2020 / Judgment on Appeal Against NCLAT Order Dated 15.12.2021; Matter Remitted to NCLT for Re Consideration
Outcome
Appeal partly allowed
Legal Topics
Section 9 Corporate Insolvency Resolution, Acknowledgement of Debt and Limitation, Admission of Additional Documents on Appeal, Reconsideration by NCLT, Maintainability of Appeal
Insolvency and Bankruptcy Code, 2016 Limitation Act, 1963 Section 9 Corporate Insolvency Resolution Acknowledgement of Debt and Limitation Admission of Additional Documents on Appeal Reconsideration by NCLT Maintainability of Appeal

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Parties

M/S Wizaman Impex Pvt. Ltd.

Appellant / Corporate Debtor

Kedrion Biopharma Inc.

Respondent / Applicant (operational Creditor)

Procedural Posture

Civil Appeal No. 466 of 2022 Against NCLAT Order in Company Appeal (at) (insolvency) No.981 of 2020 / Judgment on Appeal Against NCLAT Order Dated 15.12.2021; Matter Remitted to NCLT for Re Consideration

Legal Issues

  1. 1 Whether e-mails produced before the NCLAT but not before NCLT could be taken on record and treated as acknowledgment of debt thereby shifting the limitation period
  2. 2 Whether the Section 9 application was barred by limitation under Article 137 of the Limitation Act, 1963
  3. 3 Whether NCLAT erred in admitting additional documents at the final stage without affording adequate opportunity to the corporate debtor

Ratio Decidendi

The NCLAT order insofar as it allowed the Section 9 application based on additional e-mail documents taken on record at the final stage without adequate opportunity to the corporate debtor could not be sustained; however, the e-mail documents could not be ignored merely because they were not before the NCLT and therefore the appropriate course was to set aside the NCLAT order to the extent it allowed the Section 9 application, retain the part of the order taking the documents on record, set aside the NCLT order dated 06.10.2020 and direct the NCLT to re-consider the Section 9 application taking those additional documents into account while affording the corporate debtor adequate...

Court Disposition

Appeal partly allowed

Orders

  • Impugned NCLAT order dated 15.12.2021 set aside to the extent it allowed the application under Section 9 of the Code
  • The part of the impugned NCLAT order taking the additional documents filed with I.A. No. 2685 of 2020 on record is retained