Pratiksingh Vijayraj Singh Gautam vs Prem Associates & Anr & Ors

IN THE MATTER OF: Pratiksingh Vijayrajsingh Gautam Shareholder of ...Appellant Drishan Industries Private Limited

Versus

Prem Associates & Anr. ...Respondents Present:

For Appellant : Mr. Abhijeet Sinha, Sr. Adv. along with Ms. Honey Satpal, Mr. Nipun Singhvi, Mr. Akash Agarwalla, Ms. Tanya Gupta & Mr. Aman.

For Respondents : Mr. Dheeraj Garg, for R-1.

ORDER

(Hybrid Mode)

[Per : Mohammad Faiz Alam Khan (Oral)]

21.08.2026 Heard Shri Abhijeet Sinha Learned Senior Counsel for the

Appellant as well as Mr. Dheeraj Garg, Learned Counsel for the Respondent

No. 1 and Mr. Nilesh Godhwani, Learned Counsel appearing for the IRP.

Perused the record.

2. Learned Counsel for the Appellant at the outset submits that the

Appellant is having a very good case so far as the merit is concerned, but

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

settlement, a copy of which has been placed on record at page no. 238 of the

Appeal Paper Book.

3. It is further submitted that by entering into this settlement all the

disputes between the parties have been sorted out and the liability of the Appellant has been discharged and nothing is now due and owed to the

Appellant, so far as the Respondent No. 1 is concerned and it is further

submitted that till now except the Respondent No. 1 who had filed the

petition under Section 9 of the Code, there is no other creditor pertaining to

which any default may be attributed to the Appellant.

4. It is further submitted that the Corporate Debtor is a going concern

and even when the parties have entered into the settlement the continuance

of insolvency process, would bring a bad name to the otherwise good

reputation of the Appellant and the CD would dragged into the process of

insolvency when there are no claims have been filed by any creditor and the

Appellant has settled the dispute with Respondent No. 1 and has discharged

all liability.

5. In alternate it is submitted that having regard to the amendment

made in the Section 12A of the Code, the IRP may be directed to constitute

the CoC within the time stipulated with further direction to place the

application (Form FA) also within the time stipulated by this Appellate

Tribunal, before the Learned Adjudicating Authority and till then the interim

order which has been passed by this Appellate Tribunal may be continued.

6. Learned Counsel for the Respondent No. 1 fairly submits that he is

not having debt due to the Appellant as by entering into the settlement the

same has been discharged fully and finally.

7. It is further submitted that Respondent No. 1 is not having any

objection if any order of setting aside the Impugned Order is passed or the

parties are relegated to file Section 12A proceeding and Respondent No. 1 would corporate in early disposal of the proceedings before the Learned

Adjudicating Authority if the process of 12A and Regulation 30A of CIRP

Regulations, 2016 is initiated.

8. Learned Counsel for the IRP, however, submits that he will abide by

any direction which would be passed by this Appellate Tribunal.

9. We have considered the facts and circumstances of this case and it

appears to us that the parties have entered into the settlement and now

there is nothing due on the Appellant, so far as the Respondent No. 1 is

concerned.

10. It is further reflected that no claim has yet been filed and collated by

the IRP and it has been argued with considerable force before us by Learned

Senior Counsel for the Appellant that the Appellant is not in default with

any of its creditors, either financial or operational.

11. Having considered all the facts and circumstances of this case and

having an eye on the amended Section 12A of the Code and Regulation 30A

of CIRP Regulations, 2016, we are of the considered view that having regard

to the settlement arrived at between the parties, the end of the justice would

be served, if the parties are relegated to adopt the procedure contained

under Section 12A and Regulation 30A, however, by granting timelines for

the completion of the process.

12. Thus, we direct that the IRP shall constitute the CoC at the earliest

i.e., within two weeks from today after collating the claims and if the same

have already not been collated. Thereafter, the Form FA shall be prepared by the parties, which would be placed before the CoC by the RP/IRP within

next one week thereafter and the consent of the CoC as required would be

taken and the Form FA thereafter, shall be placed before the Learned

Adjudicating Authority, at the earliest.

13. We also request Learned Adjudicating Authority to dispose of the

application which may be filed by the IRP/RP under Section 12A of the Code

expeditiously, if possible, within 30 days from its filing.

14. We further stipulate that the interim order granted by us of date

12.08.2026, shall remain in operation till the disposal of the Section 12A

application by the Learned Adjudicating Authority.

15. With the aforesaid directions, the appeal is finally disposed of.

16. There is no order as to Costs. Pending I.A.'s, if any, is also disposed

of.

[Justice Mohammad Faiz Alam Khan] Member (Judicial)

[Mr. Naresh Salecha] Member (Technical) Sim/mr