Jatin Thakkar vs Jigar Tarunkumar Bhatt

For Appellant: Mr. Navin Pahwa, Sr. Advocate, Mr. Siddharth Garg, Advocate. For Respondent: Mr Yashaswi SK Chocksey, Mr. Vijay Rajput, Advocates for R2.

ORDER

(HYBRID MODE)

22.08.2024: The present appeal is filed u/s 61 of the Code, 2016 against

an order dated 27.09.2023 passed by Learned NCLT, Ahmedabad Branch

wherein an application preferred by R-2 u/s 9(5) of the Insolvency and

Bankruptcy Code, 2016 was admitted and CIRP was initiated against the

Corporate Debtor.

3. On 06.10.2023, this Tribunal had issued notice to the Respondents and

had stayed the impugned order dated 27.09.2023 subject to deposit of Rs.

2,32,11,783/-. The said amount was deposited by way of FDR in the name

of Registrar, NCLAT on 10.10.2023. A copy of the FDR is annexed as

Annexure A-2.

4. During the pendency of this appeal, the Corporate Debtor and

Respondent No. 2 had arrived at a mutual settlement agreement vide

IA No. 5981 of 2024 in COMPANY APPEAL (AT)(Ins) NO.1320 OF 2023

1 Settlement Deed dated 14.08.2024. As per the said settlement, the Corporate

Debtor has already paid an amount of Rs. 1,91,00,000/- vide Demand Draft

bearing No. 638985 dated 14.08.2024 drawn on Kotak Mahindra Bank,

Ahmedabad to Respondent No. 2 towards full and final settlement of all dues

and towards extinguishment of all claims/liabilities of any kind against the

Corporate Debtor. The Settlement Agreement is annexed herewith as

Annexure A-3.

5. The reference is made to Swiss Ribbon Private Limited & Ors. V.

Union of India & Ors., 2009(4) SCC 17 and also Anuj Tejpal V. Rakesh

Yadav & Anr. in Comp. App.(AT)(Ins.) No. 298/2021 wherein the Tribunal

had exercised its inherent powers and had allowed withdrawal of CIRP

proceedings prior to the constitution of the CoC. In the presence case, the

CoC has not yet been constituted.

6. The application is filed so as to release the Corporate Debtor from the

CIRP process and to enable it to function independently. Learned Counsel

for IRP (R-1) is also present and he has no objection in case the application

is allowed. Thus the Impugned order dated 27.09.2023 passed by Ld. NCLT,

Ahmedabad Branch is set aside in view of the settlement dated 14.08.24

between the Corporate Debtor and R2. In these circumstances, CIRP stands

quashed/closed against the Corporate Debtor.

7. The FDR Annexure A-2 which was got prepared by the Appellant in

the name of Registrar, NCLAT, New Delhi, be released the Appellant who shall

be entitled to the FDR amount along with interest accrued thereupon. The

IA No. 5981 of 2024 in COMPANY APPEAL (AT)(Ins) NO.1320 OF 2023

2 Appeal stands disposed of. All pending applications, if any, are also disposed

of.

[Justice Yogesh Khanna] Member (Judicial)

[Mr. Indevar Pandey] Member (Technical)

ss/kam

IA No. 5981 of 2024 in COMPANY APPEAL (AT)(Ins) NO.1320 OF 2023

3