Ramnath vs Sew Infrastructure Ltd. & Ors

Ramnath ...Appellant

Vs.

M/s. Sew Infrastructure Ltd. & Ors. ...Respondents

Present: For Appellant: - Mr. Karunesh Tandon and Mr. Mohit Raj, Advocates.

For Respondents:- Mr. Santosh Kumar, Advocate.

O R D E R

24.01.2020─ 'M/s. Sew Infrastructure Limited'- ('Financial

Creditor') moved an application under Section 7 of the Insolvency and

Bankruptcy Code, 2016 ("I&B Code" for short) against 'M/s. Jaldi Traders

& Commerce House Private Limited'- ('Corporate Debtor'). The

Adjudicating Authority (National Company Law Tribunal), Mumbai

Bench, Mumbai, by impugned order dated 21st August, 2019 admitted

the Application.

2. Earlier, when the matter was taken up, learned counsel for the

Appellant submitted that the Appellant is negotiating for settlement with

the Respondent.

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

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3. Today, when the matter was taken up, learned counsel for the

Appellant submits that the parties have reached a settlement and joint

Application under Rule 11 of the National Company Law Appellate

Tribunal Rules, 2016 has been filed enclosing the 'Terms of Settlement'

dated 14th December, 2019.

4. It is informed that the 'Interim Resolution Professional' has not yet

taken over charge and no publication has been made. The 'Financial

Creditor' has already moved an application for change of the 'Interim

Resolution Professional'. For the said reason, no publication has been

made and the 'Committee of Creditors' has not been constituted.

5. In view of the fact that no publication has been made and the

'Committee of Creditors' has not yet been constituted and parties have

reached 'Terms of Settlement' on 14th December, 2019, we in exercise of

inherent powers conferred under Rule 11 of the National Company Law

Appellate Tribunal Rules, 2016 set aside the impugned order dated 21st

August, 2019 and allow 'M/s. Sew Infrastructure Limited'- ('Financial

Creditor') to withdraw the Application under Section 7 which stands

disposed of as withdrawn. The Adjudicating Authority will now close the

proceeding. As no 'Interim Resolution Professional' has joined, we have

not fixed any fee and cost for payment by any of the parties. The

Company Appeal (AT) (Insolvency) No. 1279 of 2019 -3-

'Corporate Debtor' (company) is released from all the rigours of Law and

is allowed to function independently through its Board of Directors with

immediate effect.

The Appeal is allowed with the aforesaid observations and

directions. However, in the facts and circumstances of the case, there

shall be no order as to cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Shreesha Merla) Member(Technical)

Ar/RR

Company Appeal (AT) (Insolvency) No. 1279 of 2019