# In the matter of Zapp India Ltd. Vs. Maheshwar Textile CA (AT) No. 314-2018

> NCLAT judgment dated 2018-07-31. Citation: TCN-2018-NCLAT-00174. Zapp India Ltd. (Corporate Debtor) filed an appeal against the order dated June 13, 2018,…

- **Court:** NCLAT
- **Order date:** 31 Jul 2018
- **Citation:** TCN-2018-NCLAT-00174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/zapp-india-ltd-vs-maheshwar-textile-ca-ad0f00f5

## Summary

### Background

Zapp India Ltd. (Corporate Debtor) filed an appeal against the order dated June 13, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, in Company Petition No. IB-344(ND)/2018. The Adjudicating Authority admitted the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the Respondent (Operational Creditor), passed an order of moratorium, and asked the Operational Creditor to propose the name of another Resolution Professional. The Corporate Debtor's grievance was that a disciplinary proceeding was pending against the Resolution Professional, who was earlier proposed, and therefore, Operational Creditors were asked to propose a second name, which the Corporate Debtor claimed was illegal.

## Facts

Zapp India Ltd. (Corporate Debtor) filed an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, which admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the Respondent (Operational Creditor). The Adjudicating Authority also passed an order of moratorium and directed the Operational Creditor to propose the name of another Resolution Professional. The Corporate Debtor's grievance was that a disciplinary proceeding was pending against the initially proposed Resolution Professional. The Corporate Debtor argued that asking the Operational Creditor to propose a second name was illegal. The appeal was filed by the Corporate Debtor against the order of admission of the

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## Issues and analysis

### Issue 1: Whether the appeal filed by the Corporate Debtor is maintainable after the admission of the …

**Ratio:** After admission of the application under Section 9 of the I&B Code, an appeal at the

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**Reasoning:** The court relied on the Supreme Court's ruling in 'Innoventive Industries Ltd. Vs. ICICI

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**Interpretation:** The interpretation of Section 9 of the I&B Code, in conjunction with the

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**Application:** In this case, since the application under Section 9 was admitted and an

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Respondents:** Zapp Indi…; Maheshwar T…

## Timeline

- **2018-06-13 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, passed an…
- **2018-07-31 — Appeal filed by…**: Zapp India Ltd. (Corporate Debtor) filed an appeal against the order dated June 13, 2018,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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