IBBI having no locus standi to challenge the finding by Adjudicating Authority and gives the liberty to IBBI to inform the Resolution Professional to move appeal under Section 61 of the code to ensure that law is properly explained at the appellate stage.
Appellate Authority observed that it is very unfortunate that Insolvency and Bankruptcy Board of India (IBBI), which is a regulatory body and required to act in terms of Section 196 and Section 240 of the Insolvency and Bankruptcy Code, 2016 (for short ‘I&B Code’) has preferred an appeal under Section 61, though it cannot be held to be an aggrieved person.
If the provisions of the code has not been followed resulted in wrong finding given by the Adjudicating Authority, as the Resolution Professional represents the Corporate Debtor, it was open to him to prefer an appeal under Section 61 against the impugned order. The legal interpretation may be in the domain of the Adjudicating Authority, but if the interpretation is against the provisions of the Code and is against the legislative intent, it is the duty of the Resolution Professional to bring the same to the notice of the Appellate Authority by preferring an appeal and for the said reason, given liberty to IBBI to inform the Resolution Professional to move appeal under Section 61 of the code to ensure that law is properly explained at the appellate stage.
Link : http://ibbi.gov.in/webadmin/pdf/order/2018/Aug/1st%20Aug%202018%20in%20the%20matter%20of%20Insolvency%20and%20Bankruptcy%20Board%20of%20India%20Vs.%20Wig%20Associates%20Pvt.%20Ltd.%20&%20Ors._2018-08-06%2011:12:43.pdf