Mr. Hemanth Meka Rao vs L & T Finance Limited

Mr. Hemanth Meka Rao ...Appellant

Vs.

L&T Finance Ltd. & Anr. ...Respondents

Present: For Appellant: - Mr. Rajeev K. Panday, Mr. Vivek Singh and Mr. Swastik Dalal, Advocates.

For Respondents: - Mr. Navneet Gupta, Advocate.

ORDER

05.11.2018─ Admittedly, 'M/s. Meka Dredging Company Private

Limited'- ('Corporate Debtor') failed to pay the debt and having defaulted

to pay the amount, the Respondent- 'M/s. L&T Finance Limited'-

('Financial Creditor') filed an application under Section 7 of the

Insolvency and Bankruptcy Code, 2016 ('I&B Code' for short) for

initiation of 'Corporate Insolvency Resolution Process' against the

'Corporate Debtor'.

2. The 'Financial Creditor' made claim of principal amount

amounting to Rs. 19,60,00,000/- plus agreed interest which comes to

Rs. 22,74,42,271/- as on 9th November, 2016. The Adjudicating

Authority (National Company Law Tribunal), Single Bench, Chennai,

having noticed that the application was in order and the 'Corporate

Debtor' defaulted in payment, admitted the application.

Contd/-..............

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3. The case was taken up on 6th August, 2018 when the Appellant

took plea that it wants to settle the matter with the 'Financial Creditors'.

The Appellant settled the matter with the 'L&T Finance Limited' one of

the 'Financial Creditor' and received no due certificate. However, it failed

to make any settlement with the other 'Financial Creditor' namely--

'ARCIL'.

4. Learned counsel appearing on behalf of the 'ARCIL' submitted

that a settlement agreement was reached before initiation of the

'Corporate Insolvency Resolution Process' but the 'Corporate Debtor'

having failed to pay in terms of the settlement the settlement was

revoked. However, we are not inclined to go into the question as to

whether the revocation of the settlement was wrong or right.

5. In view of the fact that there was a default on the part of the

'Corporate Debtor' and the application filed by the 'Financial Creditor'-

'L&T Finance Limited' was in order, the Adjudicating Authority having

admitted the application, we find no ground to interfere with the said

impugned order.

6. So far as the settlement with the 'Financial Creditor'- 'L&T

Finance Limited' is concerned, if has been made, on the basis of such

settlement, we cannot grant any relief. It is informed that in the

Company Appeal (AT) (Insolvency) No. 118 of 2018 -3-

meantime, the order of liquidation has been passed on 20th September,

2018 against which the Appellant has also moved an appeal before this

Appellate Tribunal and is pending consideration.

7. For the reasons aforesaid, while we do not grant any relief to the

Appellant, we make it clear that this order will not come in the way of

the parties to settle the matter, if they do not want liquidation and may

move before the appropriate forum for appropriate relief.

The appeal and the Interlocutory Application stand disposed of

with aforesaid observation. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice A.I.S. Cheema) Member(Judicial) Ar/uk

Company Appeal (AT) (Insolvency) No. 118 of 2018