Chand Khan, Managing Director Ck ... vs Rci Industries & Technologies Ltd

Chand Khan, Managing Director CK Infrastructures Ltd. ...Appellant

Vs.

RCI Industries & Technologies Ltd. ...Respondent

Present: For Appellant:- Mr. Sanjay Bhatt, Advocate.

For Respondent:- Mr. Shobhit Nanda, Advocate.

ORDER

03.01.2018─ This appeal has been preferred by Mr. Chand Khan,

Managing Director of CK Infrastructures Ltd. ('Corporate Debtor') against

order dated 3rd November, 2017 passed by Adjudicating Authority

(National Company Law Tribunal), Bench-III, New Delhi in Company

Petition No. IB-276/ND/2017, whereby and whereunder the application

preferred by Respondent- RCI Industries and Technologies Ltd.

('Financial Creditor') under Section 7 of the Insolvency and Bankruptcy

Code, 2016 (hereinafter referred to as "I&B Code') has been admitted,

order of moratorium has been passed and 'Interim Resolution

Professional' has been appointed with certain directions as mentioned

therein.

2. Learned counsel appearing on behalf of the Appellant referring to

Contd/-...........

-2-

the pleadings submitted that before admission of the application under

Section 7 of the 'I&B Code', the Adjudicating Authority had not issued

any notice to M/s. CK Infrastructures Ltd. ('Corporate Debtor') and the

impugned order has been passed in violation of rules of natural justice.

He has also submitted that the parties have settled the dispute.

3. Learned counsel appearing on behalf of the Respondent-'Financial

Creditor' submitted that the Adjudicating Authority directed the

'Financial Creditor' to issue notice on the 'Corporate Debtor', but

accepted that no direct notice was issued by the Adjudicating Authority

to the 'Corporate Debtor'.

4. In view of the fact that no notice was issued by the Adjudicating

Authority as required to be issued in view of the decision of this Appellate

Tribunal in "M/s. Innoventive Industries Ltd. Vs. ICICI Bank & Anr. ─

Company Appeal (AT) (Insolvency) No. 1 & 2 of 2017", we have no

other option but to set aside the impugned order dated 3rd November,

2017 passed in Company Petition No. IB-276/ND/2017.

5. As the matter has been settled between the parties which is

accepted by the learned counsel for the Respondent, we find no ground

to remit the case to the Adjudicating Authority.

6. In effect, order (s), passed by the Adjudicating Authority appointing

any 'Interim Resolution Professional', declaring moratorium, freezing of

account, and all other order (s) passed by the Adjudicating Authority

Company Appeal (AT) (Insolvency) No. 307 of 2017 -3-

pursuant to impugned order and action, if any, taken by the 'Interim

Resolution Professional', including the advertisement, if any, published

in the newspaper calling for applications all such orders and actions are

declared illegal and are set aside. The application preferred by

Respondent under Section 9 of the I&B Code, 2016 is dismissed.

Learned Adjudicating Authority will now close the proceeding. The

appellant '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.

7. The Adjudicating Authority will fix the fee of 'Interim Resolution

Professional', if appointed, and the 'Corporate Debtor' will pay the fees

of the 'Interim Resolution Professional', for the period he has functioned.

The appeal is allowed with aforesaid observation. However, in the facts

and circumstances of the case, there shall be no order as to cost.

(Justice S.J. Mukhopadhaya) Chairperson

Ar/g