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Judgment
This is an appeal against an interim order passed by the Hon''ble Single Judge dated April 19, 2017, passed in connection with the Writ Petition No.16486 of 2017.
The Insolvency and Bankruptcy Code, 2016, prescribes a new procedure and it was enacted as the existing framework for insolvency and bankruptcy has been inadequate, ineffective and results in undue delays in resolution.
The said Code provides for designating the NCLT and DRT as the Adjudicating Authorities for corporate persons and firms and individuals, respectively, for resolution of insolvency, liquidation and bankruptcy.
An application was filed by the financial creditor before the Adjudicating Authority, that is, the National Company Law Tribunal, Bengaluru.
The Tribunal, on April 12, 2017, admitted the application.
This order was challenged by filing the aforementioned writ petition.
From the tenor of the arguments advanced before us, it appears that the main contention of the writ petitioner was that the National Company Law Tribunal could not have admitted the application without giving reasonable opportunity of hearing to the corporate debtor prior to admitting the application.
The Hon''ble Single Judge thought that the matter required to be heard in details and, therefore, admitted the writ petition and granted the interim order and fixed the matter after the Annual Vacation, 2017.
We think that it is an important question, which requires to be adjudicated by the Hon''ble Single Judge. His Lordship is to decide as to whether the National Company Law Tribunal ought to have provided a reasonable opportunity to the corporate debtor before admission of the application.
Therefore, at this stage, we are not inclined to entertain the writ appeal. We, however, request the Hon''ble Single Judge to dispose of the writ petition immediately after the Annual Vacation, 2017.
The writ appeal stands disposed of.
In view of the disposal of the writ appeal, the pending interlocutory application does not survive for consideration and is, accordingly, disposed of.
There will be no order as to costs.