SCI (2025.08.01) in Cosmic CRF Ltd. vs Myotic Trading Pvt. Ltd. and Ors. [(2025) ibclaw.in 308 SC, Civil Appeal No.9900 of 2025] held that;
# 3. According to the learned counsel appearing for the appellant, the findings recorded in paragraphs 105 and 106 respectively are incorrect and contrary to the records available.
# 4. If that be so, the appellant should go before the NCLAT and point out the factual errors to the Appellate Tribunal.
# 5. Since, this has something to do with factual errors, the bar of review should not come in the way of the NCLAT.
Excerpts of the Order;
1. The National Company Law Appellate Tribunal (for short “the NCLAT”) in its order has recorded the following findings in paragraphs 105 and 106 respectively as under:-
“105. We find that COC had taken legal opinion from various law firms and found Cosmic to be ineligible on various grounds. The reports on the issue of eligibility of Cosmic CRF Limited – Respondent No.3, were discussed in detail in various meetings of the CoC and the resolution applicant was intimated vide letter dated 04.11.2024 which contained in detailed manner as to how it is not found eligible under various clauses of Sections 29A(a),(c), (h) and (j) of IBC, 2016 (pages 359-366 of Appeal Paper Book). It is to be noted that both AHSK and PSA earlier entrusted by the CoC have given detailed findings and reasons with respect to their conclusions as to how Cosmic CRF Limited – Respondent No.3 was not found eligible under Section 29A. Cosmic CRF Limited approached NCLT on 05.11.2024 and NCLT vide order dated 05.11.2024 remanded the matter back to the CoC for reconsideration on the issue ineligibility of Cosmic CRF Limited under Section 29A after providing it an opportunity of being heard. Later on, RP/CoC called for the response of Cosmic CRF Limited and also asked PSA to give it final report/opinion based on all the previous reports and Cosmic CRF Limited response dated 20.01.2025 and it was also decided to send the final report of PSA to a Senior Advocate for his opinion. The final report dated 18.02.2025 of PSA again declared Cosmic CRF Limited to be in-eligible under Section 29A of IBC. But Senior Advocate in his opinion dated 03.03.2025 declared it to be eligible under Section 29A.
106. We have noted various reports of Experts which are placed on record in the pleadings. Without going into the details of these reports, we find that the report of PSA and also the earlier report submitted by AHSK & Co. are detailed reports and are similar and they both had come to the same conclusion that Cosmic CRF Limited is not eligible under Section 29A. We also note that despite multiple initial reports and despite Cosmic CRF Limited – Respondent No.3 having been given opportunity of being heard, all reports suggest non-eligibility of Cosmic CRF Limited – Respondent No. 3 except the view of senior advocate, which was obtained on the final report of PSA. Even if we don’t rely on these reports of law firms we find that the respondents have not satisfactorily replied to the real issues raised by the appellant from pages 66-72 and 88-100 of Appeal Paper Book.”
2. Today, the entire debate before us was on Section 29A of the Insolvency and Bankruptcy Code,2016 (for short “the IBC, 2016”).
3. According to the learned counsel appearing for the appellant, the findings recorded in paragraphs 105 and 106 respectively are incorrect and contrary to the records available.
4. If that be so, the appellant should go before the NCLAT and point out the factual errors to the Appellate Tribunal.
5. Since, this has something to do with factual errors, the bar of review should not come in the way of the NCLAT.
6. At this stage, Mr. Mukul Rohtagi and Mr. C. A. Sundaram, the learned counsel appearing for the respondents vehemently submitted that in no manner the findings recorded in the two paragraphs, referred to above, could be termed as perverse or contrary to the record.
7. In view of the aforesaid, this appeal stands disposed of.
8. Pending application(s), if any, stands disposed of.
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