Aliasgar Mohammed Lokhandwala vs Dalmia Group Holdings

Aliasgar Mohammed Lokhandwala ...Appellant

Vs

Dalmia Group Holdings ....Respondent Present:

For Appellant: Mr. Arun Kathpalia, Sr. Advocate along with Mr. Yusuf Iqbal Yusuf, Mr. Bhavya Sethi and Ms. Anvee Mehta Advocates.

Ms. Gyanika Kochar, Advocate

For Respondent: Mr. Shikhil Suri, Mr. Shiv Kumar Suri and Ms. Shilpa Saini, Advocates.

Mr. Vikky Dang, Advocate for IRP.

Mr. Tarun Mehta, Advocate for Intervener.

ORDER

16.10.2019 Dalmia Group Holdings (Financial Creditor) filed an

application under Section 7 of Insolvency & Bankruptcy Code, 2017 (in short

'IBC') against 'Lokhandwala Kataria Construction Private Limited' (Corporate

Debtor) which has been admitted by impugned order dated 19th September, 2019

passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai

Bench.

Mr. Arun Kathpalia, learned Sr. Counsel for the Appellant

Director/Shareholder submits that before constitution of 'Committee of

Creditors', the parties had reached a terms of settlement on 10.10.2019 and the

written terms of settlement has been signed today, on 16.10.2019, a copy of

which has been filed.

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The aforesaid fact has also been accepted by Ms. Shilpi Saini, learned

Counsel appearing on behalf of Dalmia Group Holdings (Financial Creditor).

Learned Counsel for the Appellant submits that the Appellant will pay the

admitted fee and cost of the Interim Resolution Professional.

One Mr. Vikky Dang, Advocate appeared on behalf of the Interim

Resolution Professional when the matter was taken up. However, in view of the

fact that the Appellant has admitted to the pay the Resolution cost and fee of the

Interim Resolution Professional, no reply affidavit required to be filed by the

Interim Resolution Professional.

In view of aforesaid developments and as terms of settlement has been

reached between the Appellant and the Financial Creditor prior to the

constitution of 'Committee of Creditors', this Appellate Tribunal in exercise of

power conferred by Rule 11 of the NCLAT Rules 2016, set aside the impugned

order dated 19.09.2019 passed in CP(IB) No. 1024/NCLT/MB/2019. 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.

The Interim Resolution Professional will hand over the records and the premises

of the Corporate Debtor on receipt of fee and cost.

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

cost.

[Justice S.J. Mukhopadhaya] Chairperson

(Kanthi Narahari) Member(Technical) Akc/Sk

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