Abhishek Jaiswal vs Raj Process Equipments & Systems Pvt. ...

Mr. Abhishek Jaiswal .... Appellant

Vs

M/s Raj Process Equipments & Systems Pvt. Ltd. & Anr. .... Respondents

Present: For Appellant: Mr. Francesca Kapur and Mr. Dhruv Gupta, Advocates.

For Respondents: Ms. Pratiksha Sharma, Mr. Gautam Singh and Mr. Kunal Kanungo, Advocates.

ORDER

02.08.2019 The Appellant, Mr. Abhishek Jaiswal, Shareholder of M/s

Welcome Distilleries Private Limited - ('Corporate Debtor') has challenged the

order dated 6th March, 2019, whereby the Adjudicating Authority (National

Company Law Tribunal), Mumbai Bench admitted the application under

Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) preferred

by Raj Process Equipments and Systems Pvt. Ltd. ('Operational Creditor').

2. Earlier, when the matter was taken up, it was submitted that the

impugned order was passed by the Adjudicating Authority without issuing

and serving of any notice on the 'Corporate Debtor'.

3. On 2nd May, 2019, the Counsel for the Respondent appeared and

submitted that the Appellant agreed to handover the Draft to the

Respondent.

Company Appeal (AT) (Insolvency) No. 316 of 2019 Page 1 of 3

4. Today, it is informed that the parties have reached settlement and the

Settlement Deed dated 10th July, 2019 is on record.

5. It is noticed that the 'Resolution Professional' has not appeared.

6. The Respondent - 'Corporate Debtor' has also not disputed that no

notice was issued or served by 'Operational Creditor' or the Adjudicating

Authority before admission of the application under Section 9. The

impugned order also shows that the ex-parte order was passed by the

Adjudicating Authority.

7. In the circumstances, as the impugned order dated 6th March, 2019

has been passed in violation of the rules of 'natural justice', we set-aside the

order. However, the matter is not remitted to the Adjudicating Authority as

in the meantime the Appellant has settled the matter with the Respondent.

However, this will not come in the way of the other creditors to move before

appropriate Forum, if any amount is due from the 'Corporate Debtor'.

8. In the result, order (s) passed by Ld. Adjudicating Authority appointing

'Interim Resolution Professional', declaring moratorium and all other order

(s) passed by Adjudicating Authority pursuant to impugned order and action

taken by the 'Resolution Professional' are set aside. The application

preferred by the Respondent - M/s Raj Process Equipments & Systems Pvt.

Ltd. under Section 9 of the I&B Code is disposed of as withdrawn. The

Adjudicating Authority will now close the proceeding. The 'Corporate Debtor'

(Company) is released from all the rigour of law and is allowed to function

independently through its Board of Directors from immediate effect.

9. So far as the fee and cost of the 'Resolution Professional' is concerned,

the Adjudicating Authority will decide the fee and cost incurred by the

Company Appeal (AT) (Insolvency) No. 316 of 2019 Page 2 of 3 'Resolution Professional', which will be paid by the 'Corporate Debtor' within

two weeks from the date of the decision.

10. The appeal is allowed with aforesaid observations and directions. No

costs.

[Justice S. J. Mukhopadhaya] Chairperson

[Justice A.I.S. Cheema] Member (Judicial)

[KanthiNarahari] Member (Technical)

Ash/GC

Company Appeal (AT) (Insolvency) No. 316 of 2019 Page 3 of 3