Lalit Kumar Kesarimal Jain vs Jm Financial Trustee Company Private ...

IN THE MATTER OF: Lalit Kumar Kesarimal Jain ...Appellant

Vs.

JM Financial Trustee Company Pvt. Ltd. &Ors ...Respondents

Present: For Appellant: Mr. Sudipto Sarkar, Sr. Advocate, Mr. Abhijeet Sinha, Mr. Mahesh Agarwal, Mr. Shadab S. Jan, Mr. Neeraj Kr. Gupta, Mr. HimanshuSatija, Mr. DivyangChandiramani, Advocates

For Respondent: Mr. Ramji Srinivasan, Sr. Advocate with Mr. ShubhabrataChakraborti, Ms. Sharmishtha Ghosh, Ms. Rajshree Chaudhary, Mr. Shivkrit Rai Mr. J.Shah, Advocates for R1 Mr. Amir Ariswala, Mr. Atul Jain (For R2, RP)

ORDER

(Through Virtual Mode)

19.07.2021: Heard on I.A. No. 1337 & 1338 of 2021 Applications under

Rule 11 of NCLAT Rules, 2016. This matter was listed for hearing on

06.08.2021. Meanwhile, The Appellant has filed aforesaid Applications;

therefore, today this matter is listed for orders on interim applications.

2. Ld. Sr. Counsel for the Appellant submits that on 30.06.2021 the

parties have amicably settled the dispute between them and entered into a

settlement agreement on the same day.

3. He further submits that as per the settlement agreement the CIRP costs

and fees of Interim Resolution Professional (IRP) shall be borne by the

I.A. No. 1337 & 1338 of 2021 In Company Appeal (AT) (Ins) No. 357 & 358 of 2021 2

Corporate Debtor Company. It is informed that in the light of settlement

agreement the Respondent No. 1 through IRP has filed I.A. No. 1142 of 2021

before the Adjudicating Authority under Regulation 30 A (1) (a) of the IBBI

(Insolvency Resolution Process for Corporate Persons) Regulation, 2016.

4. In this matter the constitution of the Committee of Creditors (COC) was

stayed by this Appellate Tribunal, therefore, withdrawal of the CIRP pre-

constitution of CoC will not bar other Creditors for pursuing their remedies

under law including Section 7 or 9 of the IBC, therefore, no harm or prejudice

caused to any claimant. In view of the above facts and circumstances, it is

prayed that this Appellate Tribunal may exercise its inherent powers under

Rule 11 of NCLAT Rules, 2016 and terminate the CIRP initiated vide order

dated 20.04.2021 passed by the Adjudicating Authority in CP No. 960-961 of

2020.

5. Ld. Sr. Counsel for the Respondent No. 1 (Financial Creditor) is in

agreement with the submissions made by the Ld. Sr. Counsel for the

Appellant (Corporate Debtor) and submits that the CIRP may be terminated.

6. Ld. Counsel for the IRP has stated at bar that the IRP has already

received the fees upto 30.06.2021 and the Corporate Debtor Company shall

pay the remaining fees of IRP and CIRP costs.

7. After hearing Ld. Sr. Counsels for the parties, we have gone through the

record.

8. Brief facts of this case are that the Financial Creditor (R-1) filed CP No.

960-961 of 2020 before the Adjudicating Authority under Section 7 of the IBC

for initiating CIRP against the Corporate Debtor (Kumar Urban Development

I.A. No. 1337 & 1338 of 2021 In Company Appeal (AT) (Ins) No. 357 & 358 of 2021 3

Pvt. Ltd.) Ld. Adjudicating Authority vide impugned order dated 20.04.2020

admitted the Application.

9. Being aggrieved the Appellant who is Promoter/Director of the

Corporate Debtor has preferred this Appeal.

10. We have considered the submissions of Ld. Counsels for the parties. It

is the settled law that to meet the justice this Appellate Tribunal can exercise

its inherent powers under Rule 11 of NCLAT Rules, 2016. We are of the

considered view that this is a fit case for exercising the inherent powers under

Rule 11 of NCLAT Rules, 2016. Thus, the aforesaid applications are allowed

and CIRP against the Corporate Debtor has terminated. The Corporate Debtor

is free from the rigours of the CIRP. The settlement agreement is taken on

record. The parties shall bound by the terms and conditions of the settlement

agreement and the same is deemed to be part of this order. Resultantly, CA

(AT) (Ins) No. 357 & 358 of 2021 are disposed of and the interim order is

vacated, the date of hearing 06.08.2021 is cancelled. No order as to costs.

[Justice Jarat Kumar Jain] Member (Judicial)

[Dr. Ashok Kumar Mishra] Member (Technical)

sc/md

I.A. No. 1337 & 1338 of 2021 In Company Appeal (AT) (Ins) No. 357 & 358 of 2021