Naresh Salecha JUDGMENT
Naresh Salecha, Member (T)
1. The present Appeal i.e., Company Appeal (AT) (Insolvency) No. 966 of 2022 has arisen from Impugned Order dated 07.06.2022 passed by the i.e., National Company Law Tribunal, New Delhi Bench, Court-III (in short 'Adjudicating Authority').
2. The instant appeal has been preferred by Mr. Rahul Gupta & Ms. Divya Gupta in the capacity of Members of the Suspended Board of Directors of the Corporate Debtor being Gem Batteries Pvt Ltd against order dated 07.06.2022 ("Impugned Order") passed by the National Company Law Tribunal, New Delhi Bench - III in I.A. 1678 of 2021 in CP (IB) No. 921(ND) of 2020, thereby, allowing the Application under Section 19(2) read with Section 19(3) of the Code read with Rule 11 of the NCLT Rules, 2016. The Adjudicating Authority imposed a cost of Rs. 10,00,000/- each on the Appellants under Section 70 of the Code. It is the case of the Appellants that Adjudicating Authority while passing the Impugned Orders, failed to appreciate the fact that Section 70 of the Code comes within Part II Chapter VII of the Code which deals with offences and penalties and - appropriate order if any under Section 70 can only be passed by way of trial offences by a Special Court in terms of Section 236 of the Code.
3. The Respondent is Mr. Chandra Prakash, Liquidator (Erstwhile Resolution Professional) of the........