# In the matter of Vijay Kumar Choudhury & Anr. Vs. Educomp Infrastructure & School & Ors. CA(AT)(Ins)No. 766-2019

> NCLAT judgment dated 2019-10-18. Citation: TCN-2019-NCLAT-00207. The case involves an appeal against an order by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 18 Oct 2019
- **Citation:** TCN-2019-NCLAT-00207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vijay-kumar-choudhury-anr-vs-educomp-infrastructure-school-ors-ca-088949f6

## Summary

### Background

The case involves an appeal against an order by the Adjudicating Authority (National Company Law Tribunal, Chandigarh Bench) dated June 14, 2019. The 'Resolution Professional' filed an application under Sections 19(2) and 19(3) read with Sections 17, 18 and 25 of the ‘I&B Code' alleging non-assistance by the management of the ‘Corporate Debtor'. The Adjudicating Authority concluded that the operation of Section 19 shall remain confined to 1st, 2nd, 3rd & 5th Respondents, which includes the Appellant and not on the rest of the Respondents and default determined against the Appellants and Ors. During the pendency of the appeal, the 'Corporate Insolvency Resolution Process' has been completed, and the 'Resolution Plan' has been approved by the ‘Committee of

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## Facts

M/s. Educomp Infrastructure & School Management Limited ('Corporate Applicant') filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 for its 'Corporate Insolvency Resolution Process'. The 'Resolution Professional' filed an application under Sections 19(2) and 19(3) read with Sections 17, 18 and 25 of the ‘I&B Code' alleging non-assistance by the management of the ‘Corporate Debtor'. The Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, Chandigarh by impugned order dated 14th June, 2019 concluded that the operation of Section 19 shall remain confined to 1st, 2nd, 3rd & 5th Respondents, which includes the Appellant and not on the rest of the Respondents and default determined against the Appellants and Ors.

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## Issues and analysis

### Issue 1: Whether the impugned order was passed in …

**Ratio:** The principles of natural justice require that a party be given a fair hearing and an

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**Reasoning:** The court found that the impugned order was passed without framing prima facie charges

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**Interpretation:** The Rules of Natural Justice are fundamental principles of fairness that must

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**Application:** In this case, the Adjudicating Authority failed to provide the Appellant with a

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** Vijay Kumar…
- **Respondents:** M/s. Educomp…
- **Advocates:** Rajeeve…; Apoorva Cho…; +6 more

## Timeline

- **2019-10-18 — Application…**: M/s. Educomp Infrastructure & School Management Limited filed an application under…
- **2019-06-14 — Impugned…**: The Adjudicating Authority passed an order confining the operation of Section 19 to…

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