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Corporate Debtor Cannot Maintain Appeal Under Insolvency & Bankruptcy Code

In Radius Infratel Pvt. Ltd. Vs Union Bank of India, appeal was filed by M/s Radius Infratel Pvt Ltd, which challenged an order passed by Adjudicating Authority admitting an application under Section 7 of the IBC moved by a financial creditor.

The NCLAT referred to the decision of the Supreme Court in Innoventive Industries Ltd vs ICICI Bank and others, wherein it was 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. 

Based on the above judgment, the NCLAT reiterated that corporate debtor cannot maintain appeal. However the NCLAT granted liberty to shareholder or director of the corporate debtor to file appropriate application, if not barred by limitation.

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