Bhagwandas R. Bhattad vs R M Bhuther And Company Limited And Anr

Bhagwandas R. Bhattad ...Appellant

Versus

R. M. Bhuther and Company Ltd. & Anr. ...Respondents

Present:

For Appellant: Mr. P. Nagesh, Sr. Advocate with Mr. Arjun Nanda, Mr. Akshay Sharma, Mr. Bharat Kr. Jain, Advocates.

For Respondents: Mr. Shyel Trehan, Mr. Pranav Sarthi, Ms. Shivalika, Advocates for R-2. Mr. Dyutz Ghai, Advocate for R-1

ORDER

18.05.2023: Heard Learned Counsel for the parties.

This appeal has been filed against the order dated 03.03.2023 by which

Adjudicating Authority has admitted Section 7 application on IA No. 1621/2023.

Section 7 application was filed by the Financial Creditor for default of an amount

of Rs. 1,15,88,470/-.

2. In Section 7 proceedings, a Consent Terms was entered between the

parties on 30.06.2021 under which the parties settled their issues and certain

payments were required to be made by the Corporate Debtor. There was breach

Company Appeal (AT) (Insolvency) No.494 of 2023 1 in the Consent Terms hence, an IA was filed to revive the Section 7 application

which has been revived by the order dated 14.02.2023. After the revival of the

application by the Impugned Order, Section 7 application has been admitted.

3. Learned Counsel for the Appellant submits that when the Appeal was

taken up, this Court has passed an order on 21.04.2023 to deposit the Appellant

an amount of Rs. 1,71,80,263/- which according to the Appellant has already

been deposited.

4. Learned Counsel for the Appellant submits that in view of the fact that

entire Principal Amount has been deposited +interest, there is no purpose for

continuing the CIRP any further.

5. Learned Counsel for Respondent refuting the submissions contends that

since the Consent Terms were breached by the Corporate Debtor, the

Adjudicating Authority did not commit any error in admitting Section 7

application.

6. It is submitted by the Learned Counsel for Respondent that amount of Rs.

2,27,26,425/- is due on the Corporate Debtor as per Consent Terms which

statement disputed by the Appellant.

We have considered the submission of the parties and perused the record.

7. The amount under part-IV of the Section 7 application is to the following

effect:-

Company Appeal (AT) (Insolvency) No.494 of 2023 2 Amount claimed to be in Amount claimed to be in default:

default and the date on which The Principal Amount of Rs.

the default occurred (Attach 1,00,00,000/- (Rupees One Crore

the workings for computation only), Interest of Rs. 9,23,334/-

of amount and days of default (Rupees Nine Lakhs Twenty Three

in tabular form) Thousand Three Hundred and Thirty

Four only), Financial Loan (ICD)

Processing and Sanction Charges and

Out of Pocket Expenses of Rs.

6,65,136/- (Rupees Six Lakhs Sixty

Five Thousand One Hundred and

Thirty Six only) aggregating to Amount

Outstanding of Rs. 1,15,88,470/-

(Rupees One Crore Fifteen Lakhs

Eighty Eight Thousand Four Hundred

and Seventy only)."

8. It is to be noted that in view of the Consent Terms between the

parties, the Appellant has deposited in the Court, the amount of Rs.

1,71,80,263/- as noted above.

9. We are of the view that in the ends of justice be served in directing that

the said amount deposited in the court is paid to the Financial Creditor. The

Company Appeal (AT) (Insolvency) No.494 of 2023 3 Principal Amount + Interest having been paid, we see no purpose in continuing

the CIRP against the Corporate Debtor. In so far as the submission of the

Learned Counsel for the Financial Creditor that Consent Terms, the entire

amount of Consent Terms has not been paid, the Financial Creditor is at liberty

to take such proceedings as permissible in law to recover the balance amount.

With these observations we dispose of the Appeal.

10. Learned Counsel for IRP submits that IRP fee and expenses has not yet

been paid.

11. Learned Counsel for the Appellant submit that Appellant shall make the

payment and expenses subject to submission of the bills along with necessary

receipts etc. The amount shall be paid within two weeks thereafter.

[Justice Ashok Bhushan] Chairperson

[Mr. Naresh Salecha] Member (Technical)

ss/nn

Company Appeal (AT) (Insolvency) No.494 of 2023 4