Gursev Singh Chawla vs Stella Industries Limited And Anr

National Company Law Appellate Tribunal31 July 2023Ashok Bhushan

CitationCompany Appeal (AT) (Insolvency) No.970 of 2023

Ratio decidendi

The rule this decision rests on

The Tribunal may set aside an order commencing insolvency proceedings and release the corporate debtor from the corporate insolvency resolution process where the parties have entered into a settlement that has been placed on record, since in such circumstances no purpose would be served by continuing the proceeding.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHICompany Appeal (AT) (Insolvency) No.970 of 2023IN THE MATTER OF:

Gursev Singh Chawla ...Appellant

Versus

Stella Industries Ltd. & Anr. ...Respondents

Present: For Appellant: Mr. Pulkit Deora, Ms. Maitreyee Mishra, Mr. Ashutosh Yadav, Advocates. For Respondents:

ORDER

31.07.2023: Company Appeal (AT) (Ins.) No. 970 of 2023 has been filed

against the order dated 06.07.2023 by which insolvency proceedings were

commenced against the Corporate Debtor. When the Appeal was taken on

26.07.2023 following order was passed:

"O R D E R

26.07.2023: Learned counsel for the Appellant submits that Appellant has entered into settlement with the Respondent and they seek liberty to file application by tomorrow.

List this Appeal on 31.07.2023.

In the meantime, in pursuance of the impugned order passed by the Adjudicating Authority dated 06.07.2023 no further steps shall be taken. Learned counsel for the Appellant shall inform the IRP of the date fixed."

Cont'd.../ -2-

2. The Appellant, in pursuance of the order has e-filed an application

bringing the settlement on record dated 26.07.2023. It is submitted by the

Respondent appearing in person that settlement has already been taken. A

Demand Draft of Rs.25 Lakhs has been given alongwith two more cheques.

IRP appears and submits has he has already received a cheque for Rs.2.5

Lakhs.

3. In view of the aforesaid, we are of the view that settlement having

entered between the parties, no purpose shall be served in continuing the

proceeding. The application is taken on record. Impugned order dated

06.07.2023 is set aside. Corporate Debtor is freed from CIRP. Appeal is

disposed of.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No.970 of 2023

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