Janak Goyal & Anr vs Satyendra Jain & Anr

Janak Goyal & Anr. ...Appellants Versus Satyendra Jain & Ors. ...Respondents

Present

For Appellants: Mr. Mudit Sharma and Ms. Mahima Singh, Advocates

For Respondents: Mr. Abhishek Anand, Advocate for R.P. Mr. Lekhraj Bajaj, R.P.

ORDER

10.06.2019 Mr. Satyendra Jain (Financial Creditor) filed an application

u/s 7 of the 'Insolvency and Bankruptcy Code, 2016 (for short, 'the I&B Code')

against 'M/s. Omway Buildestate Private Limited'. The Adjudicating Authority

(National Company Law Tribunal), Principal Bench, New Delhi by impugned

order dated 12th February, 2019 having admitted the application u/s 7 of the

'I&B Code', the present appeal has been preferred.

2. On 5th March, 2019, when the matter was taken up, the learned counsel

appearing on behalf of the Appellant submitted that the 'debt' is not payable in

law or the loan given by the 'Financial Creditor' is time barred. However, from 2

the record, we find that the suit was filed against the 'Corporate Debtor' and

decreed in favour of the 'Financial Creditor'. The 'Corporate Debtor' thereafter

moved before the Hon'ble 'Supreme Court', which also dismissed the appeal on

17th January, 2014. In the meantime, the 'Financial Creditor' had filed the

execution case within the limitation period being Execution Case No. 143/2013.

Taking into consideration the fact that prima facie case has been made out by

the Respondents that there is a continuous cause of action, learned counsel for

the Appellant prayed for time to enable the Appellant to settle the claim with the

Respondent (Financial Creditor) and the case was accordingly adjourned.

Learned counsel appearing on behalf of the Appellant submitted that the matter

has been settled between the parties. An affidavit has been filed on behalf of the

'Resolution Professional' of 'Omway Buildestate Pvt. Ltd.' (Corporate Debtor)

whereby it is informed that the 'Committee of Creditors' was constituted on 4th

March, 2019 who held its 1st meeting on 11th March, 2019 wherein the

'Resolution Professional' was confirmed as a 'Resolution Professional'. It is

further stated that in the 3rd meeting of the 'Committee of Creditors' was

convened on 4th June, 2019, the 'Financial Creditors' apprised the 'Resolution

Professional' that the 'Financial Creditors' and the 'Corporate Debtor' have

entered into a settlement and 'Form-FA' was submitted by the 'Financial

Creditor'. The said agenda was put to vote in the 3rd meeting on 4th June, 2019

Company Appeal (AT)(Ins) No. 202 of 2019 3

and the 'Committee of Creditors' unanimously by 100% voting share decided to

file an application u/s 12A r/w Regulation 30A before the Adjudicating Authority

for withdrawal of the 'Corporate Insolvency Resolution Process'. A copy of the

minutes of the meeting dated 4th June, 2019 has been enclosed. The 'Resolution

Professional' has also informed that he has received his fee for acting as the

'Interim Resolution Professional' / 'Resolution Professional' and further expenses

incurred have also been paid. Mr. Lekhraj Bajaj, 'Resolution Professional' is also

present along with his counsel.

3. Learned counsel appearing on behalf of 'Mr. Satyendra Jain' - 'Financial

Creditor', who filed the application u/s 7 of the I&B Code, also accepts the

aforesaid fact and also agrees for withdrawal of the petition.

4. In the facts and circumstances, we allow the Respondent - 'Mr. Satyendra

Jain' to withdraw the application filed u/s 7 of the 'I&B Code' and the impugned

order dated 12th February, 2019 is set aside passed by the Adjudicating

Authority, New Delhi Bench in C.P. No. (IB)-1013/(PB)/2018 stands disposed of

as withdrawn. The Adjudicating Authority (National Company Law Tribunal),

New Delhi will close the matter as withdrawn.

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

'Interim Resolution Professional', order declaring moratorium and all other

order(s) passed by Adjudicating Authority pursuant to impugned order and

action taken by the 'Interim Resolution Professional', including the

Company Appeal (AT)(Ins) No. 202 of 2019 4

advertisement 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 7 of the I&B Code, 2016 is disposed

of as withdrawn. Learned Adjudicating Authority will now close the

proceeding. The Corporate Debtor is released from all the rigour of law and

is allowed to function independently through its Board of Directors from

immediate effect.

6. The 'Resolution Professional' having been already paid the fees and

total cost incurred, no further order is required to be passed. The appeal is

allowed with aforesaid observation and direction. However, in the facts and

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

[Justice S.J. Mukhopadhaya] Chairperson

[Justice A.I.S. Cheema] Member (Judicial)

[Kanthi Narahari] Member (Technical)

ns/sk/

Company Appeal (AT)(Ins) No. 202 of 2019