NCLAT Gives Nod To Insolvency Proceedings Against Sahara Q Shop [Read Order]
National Company Law Appellate Tribunal refused to grant relief to Sahara Q Shop Unique Products Range Limited against an order passed by the National Company Law Tribunal admitting an application filed against the said company under section 9 of the Insolvency and Bankruptcy Code, 2016. The present appeal arose from the order of the National Company Law Tribunal which had admitted...
National Company Law Appellate Tribunal refused to grant relief to Sahara Q Shop Unique Products Range Limited against an order passed by the National Company Law Tribunal admitting an application filed against the said company under section 9 of the Insolvency and Bankruptcy Code, 2016.
The present appeal arose from the order of the National Company Law Tribunal which had admitted an application filed by S. Gurumoorthy under Section 9 of the IBC against Sahara Q Shop Unique Products Range Limited - ('Corporate Debtor'), on the main ground that there is no default on the part of the 'Corporate Debtor'.
The Appellants have argued that the order was passed ex parte and it also suffers from various infirmities. Moreover, the reliance was placed on the orders of the Supreme Court in Contempt Petition No. 412-413 of 2012 wherein the Corporate Debtor was directed to not to part with any movable or immovable property until further orders of the court. They also argued that they have still not received the funds that were supposed to get from the National Spot Exchange Limited due to intervention made by SEBI.
The Respondent, on the other hand, submitted that the aforementioned Contempt Petitions were preferred by 'Sahara India Real Estate Corporation Ltd.' and 'Sahara Housing Investment Corporation Ltd.'. resultantly, all orders that have been passed by the Hon'ble Supreme Court in the Contempt Petitions are to be read and understood in the context of these two companies only. Moreover, 'Sahara Group Companies' have even settled claims relating to 'Operational Debt' amounting to Rs. 20 crores as recently as on 30th April, 2019.
National Company Law Appellate Tribunal found no merit in the appeal and dismissed it by noting that except vague statement made by the Appellant, there is nothing on the record to suggest that the Hon'ble Supreme Court has passed specific order prohibiting Sahara Q Shop Unique Products Range Limited ('Corporate Debtor') to release or pay any amount.
[Read Order]