Umesh Aggarwal v. Ricoh India Ltd.

INSOLVENCY AND BANKRUPTCY CODE, 2016,

--Appeals and Appellate Authority --Appeal against admission of insolvency applicationAmendment of shareholders approval before filing section 10 application came into effect subsequent to admission of application --Applicability --Where the requirement of prior approval of the shareholders in the AGM came into force vide amendment in June, 2018, however, application under section 10 filed by corporate applicant was admitted in May, 2018, i.e., prior to amendment, appeal filed against admission of said application was to be dismissed.--RIL (corporate applicant) filed application under section 10 for initiating CIRP against itself. Adjudicating Authority admitted the said application. U, a shareholder of company, filed an appeal on the ground that neither Annual General Meeting (AGM) nor any Extra-ordinary General Meeting (EoGM) was conducted for taking decision to file an application under section 10 for declaring insolvency of RIL, therefore, said application was not maintainable. Held: It was observed that the prior approval of the shareholders in the AGM was substituted by the amendment made on 6-6-2018, which was not applicable in this case, as the application was admitted earlier in May, 2018. Subsequently, the matter was placed before the AGM in August, 2018, which also approved the decision for filing the application under section 10. Thus, in absence of any merit, the appeal was dismissed.