Telangana High Court
Udata Venkateswarao vs The Union Of India And 4 Others on 18 July, 2022
Bench: P Naveen Rao, G.Radha Rani
HON'BLE SRI JUSTICE P.NAVEEN RAO
AND
THE HON'BLE SMT DR. JUSTICE G. RADHA RANI
WRIT PETITION Nos. 28518 OF 2022 AND 27513 OF 2019
Date:18.07.2022
W.P.No.28518 OF 2022:
Between:
Udata Venkateswara Rao, S/o. Late vudathasubba Rao,
aged around 57 years, resident of Flat no - 202,
Chandrodaya Residency, Doctors colony, Kothapet,
Hyderabad 500035.
.....Petitioner
And
The Union of India, Rep by its., Secretary,
Ministry of Micro small and medium enterprises,
Room no 123, udyog bhavan, Rafi marg, New Delhi,
110011 and others.
.....Respondents
The Court made the following:
THE HON'BLE SRI JUSTICE P.NAVEEN RAO
AND
THE HON'BLE SMT DR. JUSTICE G. RADHA RANI
WRIT PETITION Nos. 28518 OF 2022 AND 27513 OF 2019
COMMON ORDER: (Per Hon'ble Sri Justice P.Naveen Rao)
Heard Sri Gangavarapu Vijaya Bhaskar, learned counsel
for the petitioners in W.P. Nos. 28518 of 2022 and 27513 of
2019 and learned counsel Sri G. Kalyan Chakravarthy
appearing for respondent Nos. 2 and 3 in W.P.No. 27513 of
2019.
2. These two writ petitions are filed challenging the
notices issued by respondent - Bank and the Deed of
Assignment dated 05.11.2019. Notice dated 20.03.2019 is
challenged in W.P.No.28518 of 2022 and notice dated
10.06.2019 is challenged in W.P.No.27513 of 2019.
3. As per the deed of assignment dated 05.11.2019 all
the liabilities were transferred to M/s. India Resurgence ARC
Private Limited. During the pendency of W.P.No.27513 of 2019,
petitions were filed before the National Company Law Tribunal,
Hyderabad Bench (for short 'NCLT') under Section 7 of the
Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the
Insolvency and Bankruptcy (Application to Adjudicating
Authority) Rules, 2016, seeking initiation of corporate
insolvency resolution process and to appoint an interim
resolution professional as prescribed under the Code and Rules
thereon against the corporate debtor - Master Weaver Ethnics
India Private Limited, whose Director is petitioner in those two
petitions. Having considered the matter, the NCLT passed
orders on 04.04.2021. The order reads as under:
"5. Hence, the Adjudicating Authority
admits the Petition under Section 7 of IBC,
2016, declaring moratorium for the purposes
referred toe in Section 14 of the Code, with
following directions:
A. The Bench hereby prohibits the
institution of suits or continuation of pending
suits or proceedings against Corporate
Debtor including execution of any judgment,
decree or order in any court of law, Tribunal,
arbitration panel or other authority;
transferring, encumbering, alienating or
disposing of by the Corporate Debtor any of
its assets or any legal right or beneficial
interest therein; any action to foreclose,
recover or enforce any security interest
created by the Corporate Debtor in respect of
its property including any action under
Securitization and Reconstruction of
Financial Assets and Enforcement of Security
Interest Act, 2002 (54 of 2002); the recovery
of any property by an owner or lessor where
such property is occupied by or in possession
of the Corporate Debtor;
B. That the supply of essential
goods or services to the Corporate Debtor, if
continuing, shall not be terminated or
suspended or interrupted during moratorium
period.
C. That the provisions of Sub-
section (1) of Section 14 shall not apply to
such transactions as may be notified by the
Central Government in consultation with any
financial sector regulator.
D. That the order of moratorium
shall have effect from the date of this order
till the completion of Corporate Insolvency
Resolution Process or until this Bench
approves the Resolution Plan under Sub-
Section (1) of Section 31 or passes an order
for liquidation of Corporate Debtor under
Section 33, whichever is earlier.
E. That the public announcement
of the initiation of Corporate Insolvency
Resolution Process shall be made
immediately as prescribed under Section 13
of Insolvency and Bankruptcy Code, 2016.
F. The Financial Creditor proposed
the name of Shri Malireddy Ramana Reddy is
Interim Resolution Professional and he has
given his consent in Form-2 dated
08.09.2021 and Authorization for Assignment
is valid upto 24.03.2023. Accordingly, this
Adjudicating Authority hereby appoints Shri
Malireddy Ramana Reddy having Reg. No.
IBBI/IPA-003/ICAI-N-00308/2020-
2021/13452, whose contact details are:
e-mail ID: [email protected]
Address: Flat No.202,
H.No.8-3-191/155(16/A) Sai Saurabh
Residency, Vengal Rao Nagar Hyderabad-
500038, Telangana.
as Interim Resolution Professional to
carry the functions as mentioned under the
Insolvency & Bankruptcy Code."
4. Having regard to the above extracted order, learned
counsel Sri G. Kalyan Chakravarthy representing respondents,
fairly submits that no penal action can be taken by the
respondent - Bank on its own without the leave of NCLT and
therefore, the cause in both the writ petitions does not survive.
5. Accordingly, the Writ Petitions are disposed of,
leaving it open to the petitioners to avail appropriate remedy as
available in law. Miscellaneous petitions, pending if any, shall
stand closed.
___________________
P. NAVEEN RAO, J
________________________
DR. G. RADHA RANI, J
Date: 18.07.2022
PT
THE HON'BLE SRI JUSTICE P. NAVEEN RAO
AND
THE HON'BLE SMT DR. JUSTICE G. RADHA RANI
WRIT PETITION Nos. 28518 OF 2022 AND 27513 OF 2019
Date:18.07.2022
PT
