K. Raghavendra Rao vs Lakshmi Vilas Bank & Anr

NATIONAL COMPANY LAW APPELLATE TRIBUNAL NEW DELHI Company Appeal (AT)(Insolvency) No. 189 of 2017

IN THE MATTER OF:

K. Raghavendra Rao .. Appellant

Versus

Lakshmi Vilas Bank & Anr. .. Respondents

Present:

For Appellant: Shri Haripriya Padmanabhan and Ms. Pooja Dhar, Advocates. For Respondent: Ms. Shalini Kaul, Advocate Shri Rajendra Beniwal, Advocate

ORDER

22.11.2017 Respondent- Laxmi Vilas Bank filed an application under

Section 9 of the Insolvency & Bankruptcy Code ("I&B Code") 2016 read with

Rule-6 of the Insolvency & Bankruptcy (Application to Adjudicate Authority)

Rules, 2016. During the pendency of the petition there was confusion as to

whether the application should have been filed under Section 7 of I&B Code

or not but finally the Respondent preferred to treat the Application under

Section 9 of I&B Code. The records being complete in terms of I&B Code, the

Adjudicating Authority (National Company Law Tribunal) Chennai Bench,

Chennai, by impugned order dated 17th August, 2017 admitted the

application, initiated Corporate Insolvency Resolution Process, declared

moratorium and appointed Interim Resolution Professional with certain

directions.

2. Learned Counsel appearing on behalf of the Appellant submits that

there was a dispute ongoing between the parties but he accepts that there is

Company Appeal (AT)(Insolvency) No. 189 of 2017 -2-

nothing on record in support of such dispute. Earlier time was taken by the

Counsel for the Appellant on the ground that they will settle the dispute with

the Respondent ('Operational Creditor'). Today it is informed by learned

Counsel for the Appellant that the Appellant is negotiating the matter and

State Bank of India has filed Interlocutory Application for impleadment and

may agree to bail out the Appellant and may allow to settle the dispute.

3. Learned Counsel appearing on behalf of the State Bank of India submits

that they have filed Interlocutory Application for impleadment.

4. Having heard the learned Counsel for the Appellant, the 'Operational

Creditor' and State Bank of India, we are of the view that in absence of any

defect in the application under Section 9 of the I&B Code and there is nothing

on record to suggest any existence of dispute, no interference can be made

with the impugned order dated 17th August, 2017. For the said reason, no

relief can be granted by this Appellate Tribunal. However, this order will not

come in the way of the Appellant to settle the dispute with 'Operational

Creditor' and to ask for appropriate relief from a Court of Competent

Jurisdiction. The appeal is dismissed with aforesaid observations.

[Justice S.J. Mukhopadhaya] Chairperson

[Justice Bansi Lal Bhat] Member (Judicial)

/akc/

Company Appeal (AT)(Insolvency) No. 189 of 2017