Ravi Shetty vs Dnova Infracon Pvt. Ltd. & Anr

Ravi Shetty ...Appellant

Vs

Dnova Infracon Pvt. Ltd. & Anr. ....Respondents

Present:

For Appellant: Mr. Pashupati Nath Razdan, Mr. Pulkit Agarwal and Mr. Ashutosh Kumar, Advocates. For Respondents: Mr. Dhruv Rohatgi, Advocate.

ORDER

11.11.2019: 'M/s Dnova Infracon Pvt. Ltd.' filed application under Section

9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B

Code') for initiation of Corporate Insolvency Resolution Process against 'M/s

Time & Space Lifestyle LLP'. The Adjudicating Authority (National Company

Law Tribunal), Bengaluru Bench by impugned order dated 9th September, 2019

admitted the application. Learned counsel for the Appellant (one of the

Directors of the Corporate Debtor) submits that the Adjudicating Authority

erred in passing the impugned order as the dispute of privity of contract being

a legal issue in itself existed between the parties. However, such submission is

not accepted as it is not in dispute that the Corporate Debtor defaulted to

make payment of debt more than Rupees One Lakh and there is a debt payable

by it to the Operational Creditor.

Company Appeal (AT) (Insolvency) No. 1204 of 2019 -2-

2. Having heard learned counsel for the Appellant and learned counsel for

the Respondent, in absence of any pre-existing dispute, we find no reason to

interfere with the impugned order.

3. At this stage, learned counsel for the Appellant made submission that

the Appellant wants to settle the claim with the Respondent. Such permission

is granted. Appellant may settle the claim of the Respondent - Operational

Creditor before the constitution of Committee of Creditors or in terms of

Section 12A of the I&B Code. The appeal stands disposed of with aforesaid

observation. No costs.

[Justice S. J. Mukhopadhaya] Chairperson

[Justice Venugopal M.] Member (Judicial)

[Justice Jarat Kumar Jain] Member (Judicial)

am/gc

Company Appeal (AT) (Insolvency) No. 1204 of 2019