# In the matter of Rahul Kumawat vs. Bank of India & Anr. Company Appeal (AT) (Insolvency) No. 477 of 2020

> NCLAT judgment dated 2022-11-14. Citation: TCN-2022-NCLAT-00108. This case involves an appeal against an order dated 05.03.2020, where the NCLT admitted an…

- **Court:** NCLAT
- **Order date:** 14 Nov 2022
- **Citation:** TCN-2022-NCLAT-00108
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rahul-kumawat-vs-bank-of-india-anr-company-appeal-60361249

## Summary

### Background

This case involves an appeal against an order dated 05.03.2020, where the NCLT admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating CIRP against the Corporate Debtor, MP Agro BRK Energy Foods Limited. The appellant, a suspended director, argues that the Tribunal did not pass a speaking order while admitting the application, particularly concerning objections raised by Respondent No. 2 (Corporate Debtor). The appellant contends that the objections were mentioned in the impugned order but not adequately discussed or considered in the observations and final order.

## Facts

The Respondent No. 1 (Bank of India) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against the 'Corporate Debtor' ('MP Agro BRK Energy Foods Limited'). The NCLT admitted the application on 05.03.2020. The Appellant, a suspended director of the Corporate Debtor, appealed, arguing that the NCLT did not pass a speaking order, failing to address objections raised by Respondent No. 2 (Corporate Debtor). The Appellant claimed the Corporate Debtor is an MSME and the account was standard as of 31.08.2017, before being declared NPA on 30.09.2017. The Appellant's account was operational, and a certificate was issued by Respondent No. 1 on 17.04.2018. The Respondent No. 1 ('Financial Creditor') filed the Application in Form-1

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## Issues and analysis

### Issue 1: Whether the Tribunal's order admitting the application under Section 7 of the Insolvency and …

**Ratio:** The principle of natural justice requires that judicial and quasi-judicial bodies provide

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**Reasoning:** The Tribunal is required to give its findings after taking into consideration the

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**Interpretation:** A 'speaking order' is one that demonstrates that the adjudicating authority has

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**Application:** In this case, the NCLAT found that the Tribunal's order did not adequately

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## Parties

- **Judges:** Rakesh Kuma…; Shreesha…
- **Appellants:** Rahul Ku…
- **Respondents:** M.P. Agro BRK…; BANK OF INDIA &…

## Timeline

- **2020-03-05 — NCLT Ord…**: NCLT admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…
- **2017-09-30 — Account Decla…**: The account of Respondent No. 2…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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