New Delhi, Feb 8 (PTI) The National Company Law Appellate Tribunal (NCLAT) dismissed a petition filed by regulator IBBI against an NCLT order declining to initiate insolvency proceedings against GTL Infra.

A two-member NCLAT bench termed IBBI's petition as “totally misconceived” as the financial creditor in this matter has already approached the appellate tribunal and told the regulator clearly it "has nothing to do with the litigation between two parties" - Canara Bank and the corporate debtor GTL Infra.

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The Insolvency and Bankruptcy Board of India (IBBI) had moved to the NCLAT contending that the NCLT order was based on "incorrect" interpretation of the provisions of the Insolvency & Bankruptcy Code (IBC).

The Mumbai Bench of the National Company Law Tribunal (NCLT) in February 2022 dismissed the plea of Canara Bank, a financial creditor, to initiate insolvency proceedings against GTL Infra under section 7 of IBC.

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This NCLT order has already been challenged by Canara Bank before the appellate tribunal NCLAT, which issued notices on January 23, 2023, and the matter is listed on March 17, 2023, for hearings.

However, IBBI also filed an appeal before the NCLAT impleading GTL Infrastructure Limited as respondent and Canara Bank as Performa Respondent.

IBBI in its petition averred that it is responsible for the enforcement of various rules and regulations concerning corporate insolvency resolution and amongst others.

"Therefore, it becomes imperative for the Appellant (IBBI) to file the instant appeal as the impugned order is based on an incorrect interpretation of the provisions of Insolvency & Bankruptcy Code, inter alia Section 7," it said.

However, NCLAT said from the perusal of the memorandum of appeal, it could not find the cause of concern much less the grievance of IBBI for preferring the present appeal especially when the appeals have already been filed by the aggrieved person.

"In our considered opinion as well, the Appellant (IBBI) has nothing to do with the litigation between two parties i.e. ‘Financial Creditor' and ‘Corporate Debtor', in order to challenge the impugned order by which the petition filed by the Financial Creditor has been dismissed for whatever reasons," said NCLAT

"The appeal is thus totally misconceived and not maintainable and hence, the same is hereby dismissed," said NCLAT.

Canara Bank had filed a plea before NCLT against GTL Infrastructure for the resolution of an amount of Rs 646.38 crore.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)