# In the matter of Deegee Cotsyn Pvt. Ltd. Vs. Phoenix ARC Pvt. Ltd.

> NCLAT judgment dated 2019-05-03. Citation: TCN-2019-NCLAT-00589. Phoenix ARC Pvt. Ltd. filed an application against Deegee Cotsyn Pvt. Ltd. ('Corporate…

- **Court:** NCLAT
- **Order date:** 3 May 2019
- **Citation:** TCN-2019-NCLAT-00589
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/deegee-cotsyn-pvt-ltd-vs-phoenix-arc-pvt-ltd-f2ebf134

## Summary

### Background

Phoenix ARC Pvt. Ltd. filed an application against Deegee Cotsyn Pvt. Ltd. ('Corporate Debtor'), which was admitted by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, on February 26, 2019. The 'Corporate Debtor' then preferred an appeal against this order.

## Facts

Phoenix ARC Pvt. Ltd. initiated insolvency proceedings against Deegee Cotsyn Pvt. Ltd. ('Corporate Debtor') by filing an application. The Adjudicating Authority admitted the application on February 26, 2019, leading Deegee Cotsyn Pvt. Ltd. to file an appeal. The appeal was filed by the erstwhile Directors of Deegee Cotsyn Pvt. Ltd. The Respondent argued that the appeal was not maintainable at the instance of the 'Corporate Debtor' as per the decision of the Supreme Court in "Innoventive Industries Ltd. Vs. ICICI Bank". The counsel for the Appellant submitted that the Respondent is an assignee in terms of the provisions of SARFAESI Act, 2002. The court noted that once an insolvency professional is appointed to manage the Company, the erstwhile Directors who

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## Issues and analysis

### Issue 1: Whether the appeal is maintainable at the instance of the 'Corporate Debtor' in light of the …

**Ratio:** The appeal is not maintainable at the instance of the 'Corporate Debtor' in terms of the

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**Reasoning:** The court relied on the precedent set by the Supreme Court in Innoventive Industries Ltd.

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**Interpretation:** The interpretation of the Supreme Court's decision in Innoventive Industries

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**Application:** In this case, since insolvency proceedings had been initiated against Deegee

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Respondents:** Deegee Cotsyn…; Phoenix ARC Pvt.…
- **Advocates:** Suresh Dutt…; Sonakshi…

## Timeline

- **2019-02-26 — Application A…**: The application filed by Phoenix ARC Pvt. Ltd. against Deegee Cotsyn Pvt. Ltd. was…
- **2019-05-03 — Order Da…**: The Respondent Phoenix ARC Pvt. Ltd. has filed an application against Deegee Cotsyn Pvt.…

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