Aliasgar Chadarwala vs Asona India Pvt. Ltd

Aliasgar Chadarwala ...Appellant

Vs

Asona India Pvt. Ltd. & Anr. ....Respondents

Present: For Appellant: Mr. Debmalya Banerjee and Mr. Kartik Bhatnagar, Advocates. For Respondents: Mr. Girish Kumar, Advocate for RP.

ORDER

11.04.2019: This appeal has been preferred by 'Aliasgar Chadarwala',

Director of 'AHZ Interior Pvt. Ltd.' against order dated 10th December, 2018

whereby application under Section 9 preferred by 'Asona India Pvt. Ltd.'

(Operational Creditor) has been admitted by the Adjudicating Authority (National

Company Law Tribunal), Mumbai bench. Learned counsel appearing on behalf

of the Appellant submits that there was only one creditor i.e. 'Asona India Pvt.

Ltd.' (Operational Creditor) and Appellant has settled the matter on 28th

February, 2018 and paid the amount. Copy of the settlement has also been

enclosed. Relevant portion of the Agreement and Terms and Condition read as

follows:-

"(a) Corporate Debtor has paid Rs.21,21,000/- (Rupees

Twenty One Lakhs Twenty One Thousand Only) vide

Demand Draft No. 0011096 dated 27th February 2019, to -2-

the Operational Creditor on 28th February 2019, (herein

after called the "settlement amount").

(b) On transfer and receipt of the settlement amount, the

Operational Creditor will take necessary steps to

withdraw the above said petition being company petition

no CP(IB)-1330/(MB)/2017 filed before the said "Hon'ble

Bench".

(c) Both the parties hereto agree that as and when the

settlement amount is paid, the same is deemed to be

received by the Operational Creditor and the Operational

Creditor further agrees that the Operational Creditor shall

not file any claim/complaint against the Corporate

Debtor, its employees and or its representatives, whether

arising out of or in connection with the said claim, and the

claim of the Operational Creditor stands fully and finally

settled and Corporate Debtor's refutation/ repudiation of

Operational Creditor's claim will also come to end.

(d) The Operational Creditor hereby declares and

acknowledges that the Operational Creditor has

unconditionally withdrawn their complaints made to

Company Appeal (AT) (Insolvency) No. 120 of 2019 -3-

various regulatory authorities/police, courts etc, if any,

and the Operational Creditor further unconditionally

agrees that the Operational Creditor will not pursue any

further proceedings against Corporate Debtor or its party

of the third part. Accordingly, the Operational Creditor

has no such complaints/ claims pending against

Corporate Debtor and / or its employees."

2. Mr. Girish Kumar, Advocate appearing on behalf of Mr. Nagaraj,

Resolution Professional submits that the Resolution Professional received only

one claim, that is, from the Operational Creditor in question and there is no

other claimant and also accepted that the parties have settled the claim and a

sum of Rs.3,50,000/- (Rupees Three Lakh Fifty Thousand Only) has been paid

to the Resolution Professional towards his fees and resolution cost. He is allowed

to file the reply affidavit in course of day. Taking into consideration the aforesaid

fact that the parties have settled and the Respondent - Operational Creditor

intends to withdraw application under Section 9, we set aside the impugned

order dated 10th December, 2018 and allow the prayer of the Respondent to

withdraw the application under Section 9, which stands withdrawn. The

Adjudicating Authority will close the case as withdrawn.

Company Appeal (AT) (Insolvency) No. 120 of 2019 -4-

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

'Resolution Professional', declaring moratorium, freezing of account, and all

other order(s) passed pursuant to impugned order and action taken by the

'Resolution Professional', including the advertisement published in the

newspaper calling for applications and actions are declared illegal and are

set aside. The 'Corporate Debtor' is released from the rigour of law and

is allowed to function independently through its Board of Directors from

immediate effect.

4. The appeal is allowed with aforesaid observations. However, there shall be

no order as to cost.

[Justice S. J. Mukhopadhaya] Chairperson

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

(Kanthi Narahari) Member (Technical) am/sk

Company Appeal (AT) (Insolvency) No. 120 of 2019