Digambar Nandi vs Shresth Builders Private Limited

Digambar Nandi, Suspended Director of Virajaa Steel ...Appellant and Power Pvt. Ltd.

Versus

Shresth Builders Pvt. Ltd. & Anr. ...Respondents

Present:

For Appellant : Mr. Chitranshul A Sinha, Saswat Acharya, Shivam Shorewala, Rakshita Bargava, Adv.

For Respondent : PCS Saroj Ku Sahoo, Usha Singh, for R1 Mr. Chittaranjan Panda, CA & Mr. Shahrukh Inam, Adv. for Intervenor

ORDER

30.10.2025: Heard Mr. Chitranshul A Sinha, Adv. for the Appellant, Ms.

Usha Singh, Adv. for Respondent No. 1 (Financial Creditor), Mr. Umesh

Chandra Sahu, IRP in person, Mr. Shahrukh Inam for Intervenor i.e. Secure

Media & Entertainment Consultancy Management Pvt. Ltd. as well as

Chittaranjan Panda for another Intervenor i.e. BSR Finance & Construction

Ltd.

2. Ld. Counsel for the Appellant as well as Ld. Counsel for the Respondent

while drawing the attention of us on the affidavit dated 24.10.2025, whereby

deed of settlement agreement of date 16.10.2025 has been filed, submits that

the CIRP in the instant case was initiated on an application moved by the

Respondent No. 1 under Section 7 of the Insolvency and Bankruptcy Code, 2016 (in short 'Code'), however, the dispute between the parties has now

settled and the terms of the settlement have also been recorded in writing

which has been placed on record by an affidavit dated 24.10.2025.

3. Our attention has been drawn to the various terms of the settlement

including the terms and conditions no. I to XI in order to show that it has

been agreed between the parties that in settlement of the dues of the

Respondent No. 1 (Financial Creditor) i.e. Rs. 1,57,41,801/- shall be paid. In

this regard, the Financial Creditor (R1) shall also receive the fixed deposit

amount of Rs. 1,18,88,924/- which has been deposited with the Registrar of

this Appellate Tribunal by the Appellant under the orders of this Court dated

24.09.2025 and rest of the amount i.e. Rs. 38,52,877 has already been paid

to Respondent No. 1 through demand draft no. 325197 drawn on Federal

Bank dated 03.10.202.

4. Other stipulations mentioned in the terms and conditions have also

been highlighted with regard to the payment of fee of the IRP etc.

5. It is on the basis of this settlement, a joint request has been made by

the Ld. Counsel for the Appellant as well as Ld. Counsel for the Respondent

No. 1 to dispose of the appeal in terms of the settlement providing further

liberty to the parties to approach the Ld. NCLT through the IRP under Section

12A of the Code read with Regulation 30A of IBBI (Insolvency Resolution

Process for Corporate Persons) Regulations, 2016 (in short 'Regulations')

pertaining to the withdrawal of the proceeding pending before the Ld. NCLT.

6. At this juncture, Mr. Shahrukh Inam as well as Mr. Chittaranjan

Panda, CA submits that they have filed intervention applications in this

appeal on behalf of Secure Media & Entertainment Consultancy Management Pvt. Ltd. and BSR Finance & Constructions Ltd. respectively who are the

financial creditors and they have filed their claim of Rs. 90.12 Lakh by Secure

Media & Entertainment Consultancy Management Pvt. Ltd. and Rs. 56.67

lakh by BSR Finance & Constructions Ltd as Financial Creditors with the

IRP.

7. We have heard Ld. Counsels for the parties and perused the record.

8. It is undisputed fact that the CIRP in this case was initiated on an

application moved by the Respondent No. 1 under Section 7 of the Code and

having regard to the settlement deed produced by the Ld. Counsel for the

Appellant and Respondent No. 1 it is reflected that they have settled their

dispute in terms of settlement deed.

9. This Appellate Tribunal vide order dated 24.09.2025 has passed an

order whereby it was directed that in the meantime, the CoC if not constituted

as on date, shall not be constituted till the next date and no further steps

shall be taken in pursuance of the impugned order.

10. Thus, we do not find any reason to keep the instant appeal pending as

the dispute appears to have been settled by the contesting parties and a

decision under Section 12A of the Code would now be taken by the Ld. NCLT.

11. In so far as the Intervenors are concerned, whose application has not

yet been disposed of may appear before the Ld. NCLT at an appropriate time

when the application under Section 12A of the Code r/w Regulation 30A of

the Regulations would be filed by the IRP and may agitate their claim before

the Ld. NCLT.

12. However, in so far as the instant appeal is concerned, they are not

having any right to compel the Appellant or Respondent No. 1 to continue

with the appeal.

13. Having regard to the above facts and circumstances, the instant appeal

is finally disposed of with liberty to the Appellant as well as the Respondent

No. 1 to file an application under Section 12A of the Code r/w Regulation 30A

of the Regulations to the IRP who shall place the same before the Ld. NCLT

and the said application would be disposed of by the Ld. NCLT strictly in

accordance with law laid down by the Hon'ble Supreme Court in the case of

GLAS Trust Company LLC Vs. BYJU Raveendran & Ors. (Civil Appeal No.

9986 of 2024).

14. Intervenors may very well agitate their claims in aforesaid proceedings

before the Ld. NCLT.

15. Needless to say that after the acceptance of the settlement proposal or

disposal of the application under Section 12A of the Code which would be filed

by the parties before the Ld. NCLT, the amount of Rs. 1,18,88,924/- which is

deposited with the Registrar of this Tribunal may be dealt with as per the

orders which may be passed by Ld. NCLT with regard to the application moved

under Section 12A of the Code.

16. If any application as contemplated under Section 12A of the Code r/w

Regulation 30A of the Regulations is filed with the IRP within 15 days from

today, the interim order dated 24.09.2025 passed by this Court shall remain

in continuation till the culmination of proceedings under Section 12A of the

Code before the Ld. NCLT.

17. We expect the Adjudicating Authority to consider and dispose of the

application which may be moved by the parties under Section 12A of the Code

before it at the earliest.

[Justice Md. Faiz Alam Khan] Member (Judicial)

[Mr. Naresh Salecha] Member (Technical) Sheetal/rr