# In the matter of Bhagwati Power and Steel Ltd. vs. Central Coalfields Ltd. & Anr.,Company Appeal (AT) (Insolvency) No. 797 of 2022

> NCLAT judgment dated 2022-12-15. Citation: TCN-2022-NCLAT-00024. The appeal was filed against the order dated May 12, 2022, passed in I.A. No. 983/KB/2021.…

- **Court:** NCLAT
- **Order date:** 15 Dec 2022
- **Citation:** TCN-2022-NCLAT-00024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bhagwati-power-and-steel-ltd-vs-central-coalfields-ltd-anrcompany-appeal-0900985a

## Summary

### Background

The appeal was filed against the order dated May 12, 2022, passed in I.A. No. 983/KB/2021. The Adjudicating Authority rejected the application, observing that the Corporate Debtor had filed Writ Petition No. 4178 of 2016, and the matter was pending adjudication before the Jharkhand High Court.

## Facts

Bhagwati Power and Steel Ltd. filed an appeal against an order dated May 12, 2022, passed in I.A. No. 983/KB/2021. The Adjudicating Authority had rejected the application because the Corporate Debtor had filed Writ Petition No. 4178 of 2016, which was pending before the Jharkhand High Court. The appellant submitted that Writ Petition No. 4178 of 2016 was withdrawn on December 23, 2021. The court found that the Adjudicating Authority should consider I.A. No. 983/KB/2021 after hearing both parties. The impugned order was set aside, and the matter was remitted back to the Adjudicating Authority for fresh consideration.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the application I.A. No. 983/KB/2021 …

**Ratio:** The Adjudicating Authority should consider the application on its merits, especially when

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**Reasoning:** The court reasoned that since the Writ Petition No. 4178 of 2016 was withdrawn, the

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**Interpretation:** The interpretation is that the Adjudicating Authority should not reject an

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**Application:** Since the Writ Petition No. 4178 of 2016 was withdrawn on December 23, 2021,

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## Parties

- **Judges:** Ashok Bh…; KanthiNar…; +1 more
- **Appellants:** Bhagwati Power…
- **Respondents:** Central Coalfields…

## Timeline

- **2016-01-01 — Writ Petitio…**: Corporate Debtor filed Writ…
- **2021-12-23 — Writ Petition…**: Writ Petition No. 4178…

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