Analysis of NCLAT Judgement in Damont Developers Pvt. Ltd. vs. Bank of Baroda & Anr.

Except the Corporate Debtor, no other party has right to intervene at the stage of admission of a petition under Section 7 or 9. However, an aggrieved party may prefer an appeal if the order of admission affects the person.

It is clear that the Adjudicating Authority is required to go through the record to find if there is a debt and default and while doing so it was open for the Corporate Debtor to show that there is no debt payable and no default, at the stage of admission of the petition. Except the Corporate Debtor, no other party has right to intervene at the stage of admission of a petition under Section 7 or 9. However, an aggrieved party may prefer an appeal if the order of admission affects the person.

In the present case, we find that the order of admission dated 18th March, 2019 in no manner has cast any impact on the case of the Appellant. It is merely an order of admission of the application under Section 7 against the Corporate Debtor. In view of the provisions of the I&B Code, in case, the Interim Resolution Professional or Resolution Professional wants to take possession of the Hotel namely ‘Hotel Brys Fort, Jaisalmer’, the Appellant may bring facts regarding its claim to the notice of the Interim Resolution Professional/ Resolution Professional. Thereafter, the Interim Resolution Professional/ Resolution Professional will consider it in the light of explanation to Section 18(f) of the I&B Code. Even if, after that the Appellant has some grievance he can move before the Adjudicating Authority under Sub-Section 5 of Section 60 and thereafter, if his grievance is not resolved, he may prefer an appeal under Section 61 before this Appellate Tribunal.

Judgement link : https://nclat.nic.in/Useradmin/upload/17473698525cc189136ced4.pdf