Ashutosh Sinha vs Pee Aar Automative Technologies Pvt Ltd

Present: For Appellant : Mr. Sandeep Kapur, Ms. Apoorva Pandey, Mr. G.G. Kashyap and Mr. Niladree Chatterjee, Advocates

For Respondent : Mr. Shubo Jana, Advocate

ORDER

20.12.2019 In pursuance of an application under Section 9 of the

'Insolvency and Bankruptcy Code, 2016' ('I&B Code', for short) filed by 'Pee Aar

Automotive Private Limited' (Operational Creditor), the Adjudicating Authority,

Allahabad Bench by impugned order dated 9th December, 2019 initiated the

'Corporate Insolvency Resolution Process' against 'Lee Electricals Limited'

(Corporate Debtor)', which is under challenge.

2. Learned counsel for the Appellant submits that the parties have reached

settlement and the 'Committee of Creditors' has not been constituted. It is

further stated that the 'Corporate Debtor' is a running company.

3. Mr. Shubo Jana, learned counsel for the Respondent - 'Pee Aar

Automotive Technologies Private Limited' (Operational Creditor) submits that

immediately after the order of admission, the Appellant approached the

Respondent and reached the 'Terms of Settlement' on 13th December, 2019 2

by which the Appellant agreed to pay Rs.12,61,252/- vide Demand Draft

bearing No. 092113 dated 13th December, 2019 drawn on HDFC Bank and

Rs.20,00,000/- vide Demand Draft bearing No. 092112 dated 13th December,

2019 drawn on HDFC Bank aggregating to a sum of Rs. 32,61,252/- towards

full and final settlement of the total debt of Rs.40,76565/-, as claimed by the

Respondent.

4. Mr. Anil Rustgi, 'Interim Resolution Professional' submitted that he has

performed his job for about 10 days and agreed to receive a sum of

Rs.50,000/- as fees. He further submits that he has incurred travelling

expenses of Rs.5,000/- approximately. Further, according to him there are

six factories and number of publications are made for which he incurred a

cost of Rs.90,000/-. He further submits that he has not received any claim

till date.

5. Learned counsel for the Appellant has come with the Demand Drafts

(as mentioned above at paragraph 3) and handed over the same to Mr. Shubo

Jana, Advocate, who in turn handed over the same to Mr. Vikas Saini,

Authorised Representative of the 'Pee Aar Automotive Technologies Private

Limited', who is present.

6. Learned counsel for the Appellant also handed over the cheque for

Rs.50,000/- to Mr. Anil Rustgi, 'Interim Resolution Professional towards his

fee.

7. Taking into consideration the fact that the parties have reached

settlement four days after the order of admission and no 'Committee of

Creditors' have been constituted, in exercise of powers conferred under Rule

Company Appeal (AT) (Insolvency) No. 1497 of 2019 3

11 of the NCLAT Rules, 2016, we set aside the impugned order of admission

dated 9th December, 2019 passed in 'C.P. No. IB-334/ALD/2019' passed by the

Adjudicating Authority (National Company Law Tribunal), Allahabad Bench and

disposed of the application under Section 9 of the 'I&B Code' preferred by 'Pee

Aar Automotive Private Limited' stands as withdrawn. The 'Corporate Debtor' is

released from rigour of the 'Corporate Insolvency Resolution Process'. The case

is remitted to the Adjudicating Authority (National Company Law Tribunal),

Allahabad Bench to determine the actual cost incurred by the 'Interim Resolution

Professional' towards publication on the basis of the receipt issued by the

publishers of the newspaper. The Appellant has agreed to pay the actual cost to

the 'Interim Resolution Professional' as may be determined along with

Rs.5,000/- towards travelling cost etc. within 7 days from the date of the order

as may be passed by the Adjudicating Authority (National Company Law

Tribunal), Allahabad Bench. It is expected that the Adjudicating Authority will

pass such order on or before 6th January, 2020.

The appeal is allowed with aforesaid observations and directions. No

costs.

[Justice S.J. Mukhopadhaya] Chairperson

[Justice Venugopal M.] Member (Judicial)

/ns/gc

Company Appeal (AT) (Insolvency) No. 1497 of 2019