13 October, 2021
Matter: Rajendra Narottamdas Sheth & Anr. v. Chandra Prakash Jain & Anr.
Order dated: 30 September 2021
Summary: In the present case, the issue before the SC was regarding the maintainability of an application for initiating CIRP against a corporate debtor under the Code filed by a power of attorney holder. Mr. Praveen Kumar Gupta had been given general authorisation by the Union Bank of India (Bank) with respect to all the business and affairs of the Bank, including commencement of legal proceedings before any court or tribunal with respect to any demand and filing of all necessary applications in this regard. Such authorisation was granted by way of a power of attorney pursuant to a resolution passed by the Bank’s board of directors.
The application was allowed by the NCLT, Ahmedabad Bench, and NCLT’s decision was upheld by the NCLAT. On appeal, the SC agreed with the view taken by the NCLAT that, in the present case, the authorization to Mr. Praveen Kumar Gupta, was granted by way of a power of attorney pursuant to the resolution passed by the Bank’s board of directors. The mere fact that the authorisation was granted through a power of attorney would not impair Mr. Praveen Kumar Gupta’s authority to file the application. Accordingly, the appeal was dismissed.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
