Dhir & Dhir Associates represented the suspended director of Gati Infrastructures Pvt. Ltd. (‘Corporate Debtor’) before the Hon’ble National Company Law Appellate Tribunal at Chennai (‘NCLAT’) on the grounds that the National Company Law Tribunal, Hyderabad (‘NCLT’) contrary to the position of law as laid down in Section 9 of Insolvency & Bankruptcy Code, 2016 (‘IBC’) and in absence of any debtorcreditor relationship between the parties admitted proceedings against the Corporate Debtor. The case commenced when Sew & Prasad Joint Venture filed an application under Section 9 of IBC against the Corporate Debtor, which was admitted by the NCLT on 26th April, 2021. Thereafter, suspended director of the Corporate Debtor being aggrieved by the admission order preferred an appeal before NCLAT.

After riveting arguments in the matter, NCLAT reserved the matter for orders on 12th May, 2021. Thereafter, a divergent judgment was pronounced on 18th June, 2021, wherein Justice Venugopal M, Member (Judicial) dismissed the Appeal, however, V.P. Singh, Hon’ble Member (Technical) opined that the Section 9 application is not maintainable and believed that ‘Appeal’ deserves to be allowed. Thus, to resolve the case and to arrive at a final decision, the office of the Registry of NCLAT Chennai Bench was directed to transmit the copies of Judgment to the Registrar, Principal Bench of NCLAT, New Delhi, a landmark in itself, to place the matter before the Officiating Chairperson, New Delhi for nominating a Third Member to render his opinion/ decision in the subject matter in issue.