# In the matter of Techno Electric & Engineeing Co. Ltd. Vs. Mcleod Russel India Ltd. CA(AT)(Ins) No. 367 of 2020

> NCLAT judgment dated 2020-03-03. Citation: TCN-2020-NCLAT-00353. This is a Company Appeal (AT) (Insolvency) No. 367 of 2020 before the National Company Law…

- **Court:** NCLAT
- **Order date:** 3 Mar 2020
- **Citation:** TCN-2020-NCLAT-00353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/techno-electric-engineeing-co-ltd-vs-mcleod-russel-india-ltd-ca-aaad3da1

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 367 of 2020 before the National Company Law Appellate Tribunal, New Delhi. Techno Electric & Engineering Co. Ltd. is the Appellant, and McLeod Russel India Ltd. is the Respondent. The appeal arises from a Section 7 application under the I&B Code, which is at the pre-admission stage. The Appellant's counsel submits that seven months have passed since filing the application, and the Adjudicating Authority has not made a decision.

## Facts

Techno Electric & Engineering Co. Ltd. filed a Section 7 application under the I&B Code against McLeod Russel India Ltd. The application has been pending before the Adjudicating Authority for seven months without a decision on admission. The Appellant argues that this delay is unreasonable, given the timelines prescribed by the I&B Code. The Adjudicating Authority has not taken a decision regarding admission or otherwise of the application. The statutory period of 14 days for passing an order by the Adjudicating Authority with regard to admission or otherwise of an application under Section 7 of the Code has not been held to be “mandatory".

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's delay in deciding on the admission of a Section 7 application …

**Ratio:** While the statutory period of 14 days for passing an order on a Section 7 application is

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**Reasoning:** The court reasoned that although the 14-day period is not mandatory, the overall intent

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**Interpretation:** The interpretation is that the Adjudicating Authority must prioritize and

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**Application:** The court applied this principle by directing the Adjudicating Authority to

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## Parties

- **Judges:** Bansi Lal…; Shreesha…
- **Appellants:** Techno Electric &…
- **Respondents:** McLeod Russel…

## Timeline

- **2020-03-03 — Order Da…**: The NCLAT disposed of the appeal, directing the Adjudicating Authority to prioritize the…

## 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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