Madhu Nambiar vs Trivium Systems Inc. Rep. By Their ...

Madhu Nambiar ...Appellant

Vs.

M/s. Trivium Systems Inc. Rep. by their Indian Subsidiary Trivium India Software Pvt. Ltd. & Ors. ...Respondents

Present: For Appellant: - Mr. Hemchandra, IRP.

Mr. Rohan Saluja and Mr. Shival Narag, Advocates.

For Respondents: - Ms. Anuparna Bordoloi and Mr. Mahesh Thakur, Advocates.

O R D E R

18.09.2019─ 'M/s. Trivium Systems Inc.' ('Operational Creditor')

filed a C.P. No. 133/15 (T.P. No. 15/17) under Sections 433(e), 434(1)

and 439 of the Companies Act, 1956 before the Hon'ble High Court of

Karnataka against 'M/s. Sobha Renaissance Information Technology

Private Limited (SRIT)' for winding-up 'M/s. Sobha Renaissance

Information Technology Private Limited (SRIT)'- ('Corporate Debtor').

2. Subsequently, pursuant to Notification issued under Section 434

of the Companies Act, 2013, the case was transferred to the National

Company Law Tribunal, Bengaluru Bench. The petition was converted as

application under Section 9 of the Insolvency and Bankruptcy Code, 2016

Contd/-........

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("I&B Code" for short) and on filing a Form 5 and being satisfied that

there is a debt and default, the said application under Section 9 of the

'I&B Code' was admitted by impugned order dated 16th August, 2019

passed by the Adjudicating Authority (National Company Law Tribunal).

3. While challenging the impugned order, learned counsel for the

Appellant submitted that though the challenge has been made on the

ground of limitation but the Appellant is ready to settle the matter with

the Respondent- ('Operational Creditor')

4. It was informed that the 'Committee of Creditors' has not been

constituted and for the said reason, we allowed the parties to reach an

amicable settlement.

5. Learned counsel for the Appellant submits that the matter has

been settled between the parties and the total claim amount has been

paid in terms of Settlement.

6. Learned counsel appearing on behalf of 1st Respondent-

('Operational Creditor') submits that the 'Operational Creditor' has

already received the amount.

7. Mr. Hem Chandra ('Resolution Professional') and his counsel

accept that the 'Committee of Creditors' has not been constituted and

Company Appeal (AT) (Insolvency) No. 946 of 2019 -3-

also submits that he has given the details of fee payable to him and cost

incurred by him.

8. Learned counsel appearing on behalf of the Appellant handed over

two Demand Drafts one for Rs. 2,24,741/- and one for Rs. 29,500/-

respectively and both issued in the name of Mr. Hem Chandra

('Resolution Professional') from Punjab and Sindh Bank.

9. Mr. Hem Chandra ('Resolution Professional') submits that he is

satisfied with the amount shown in the Demand Drafts. The Demand

Drafts are being handed over to Mr. Hem Chandra ('Resolution

Professional') in presence of his counsel in the Court.

10. In the facts and circumstance of the case, in exercise of inherent

power being conferred under Rule 11 of the NCLAT Rules, 2016, we set

aside the impugned order dated 16th August, 2019 passed by the

Adjudicating Authority, Bengaluru Bench.

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

'Interim Resolution Professional', declaring moratorium, freezing of

account, and all other order (s) passed by the Adjudicating Authority

pursuant to impugned order and action, if any, taken by the 'Interim

Resolution Professional', including the advertisement published in the

newspaper calling for applications all such orders and actions are

declared illegal and are set aside. The application preferred by

Company Appeal (AT) (Insolvency) No. 946 of 2019 -4-

Respondent under Section 9 of the 'I&B Code' is dismissed. Learned

Adjudicating Authority will now close the proceeding. The 'Corporate

Debtor' (company) is released from all the rigour of law and is allowed to

function independently through its Board of Directors from immediate

effect.

12. The appeal is allowed with aforesaid observation. 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) Ar/sk

Company Appeal (AT) (Insolvency) No. 946 of 2019