# In the matter of JD Consultancy Services Pvt. Ltd. & Ors. Vs. Asset Reconstruction Company (India) Ltd. & Anr. CA(AT)(Insolvency) No.. 260 & 514-2019

> NCLAT judgment dated 22 Jul 2019. Citation: TCN-2019-NCLAT-00432. This case involves two company appeals, Company Appeal (AT) (Insolvency) No. 260 of 2019 and…

- **Court:** NCLAT
- **Order date:** 22 Jul 2019
- **Citation:** TCN-2019-NCLAT-00432
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jd-consultancy-services-pvt-ltd-ors-vs-asset-reconstruction-company-e2e0427a

## Summary

### Background

This case involves two company appeals, Company Appeal (AT) (Insolvency) No. 260 of 2019 and Company Appeal (AT) (Insolvency) No. 514 of 2019, both arising from the same Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Anandram Developers Private Limited. In the first appeal, M/s. JDA Consultancy Services Pvt. Ltd. claimed to be an 'Assignee' of unsecured financial creditors of the corporate debtor. Initially, the appellant was included as a member of the Committee of Creditors (CoC). However, M/s. Asset Reconstruction Company (India) Limited objected, leading the Adjudicating Authority to rule on March 5, 2019, that the appellant, being an 'Assignee' of a 'related party', could not be a member of the CoC.

## Facts

The appellant, M/s. JDA Consultancy Services Pvt. Ltd., claimed to be an 'Assignee' of Mr. K. Bapaiah and Mrs. Indira Anand, who were shareholders and erstwhile shareholders of the 'Corporate Debtor', M/s. Anandram Developers Private Limited. These shareholders were considered 'Unsecured Financial Creditors'. Initially, the appellant was included as a Member of the Committee of Creditors (CoC) in the Corporate Insolvency Resolution Process (CIRP) initiated against the corporate debtor.

## Issues and analysis

### Issue 1: Whether an 'Assignee' of a 'related party' can…

**Ratio:** The NCLAT held that when a significant period, such as more than 270 days, has elapsed in…

**Reasoning:** The NCLAT did not decide this issue on its merits. The reasoning provided by the Tribunal…

**Interpretation:** The NCLAT interpreted the procedural timeline of the **Insolvency and…

**Application:** Given that over 270 days had passed and the corporate debtor was facing…

## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Advocates:** For Appel…; Arun Kathpalia,…; +8 more

## Timeline

- **November 30, 2018 — Previous NCLAT…**: NCLAT decided Mrs. Mamatha vs. AMB Infrabuild Pvt. Ltd. & Ors. – Company Appeal (AT)…
- **March 5, 2019 — Adjudicating Authority…**: The Adjudicating Authority held that M/s. JDA Consultancy Services Pvt. Ltd., being an…

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