Ritesh Khandelwal vs Dimension Data India Pvt. Ltd

Mr. Ritesh Khandelwal .... Appellant

Vs

Dimension Data India Private Limited .... Respondent

Present: For Appellant: Mr. Abhinav Vasisht, Senior Advocate with Ms. Padmaja Kaul, Mr. Yugank Goel and Ms. Priya, Advocates.

For Respondents: Mr. Y. Suryanarayana, Advocate for Interim Resolution Professional representing Corporate Debtor.

Mr. Srinivas Thatikonda, Interim Resolution Professional.

Ms. Monalisa Kosaria and Mr. D. Abhinav Rao, Advocates for Respondent No.1.

ORDER

21.08.2019 M/s. Dimension Data India Pvt. Ltd. ('Operational

Creditor') filed an application under Section 9 of the Insolvency and

Bankruptcy Code, 2016 (for short the 'I&B Code') against M/s. NextGen

Datacenter and Cloud Technologies Private Limited ('Corporate Debtor'),

which was admitted by the Adjudicating Authority (National Company Law

Tribunal), Bengaluru Bench by impugned order dated 24th July, 2019, which

has been challenged by the Appellant-Shareholder of the 'Corporate Debtor'.

Company Appeal (AT) (Insolvency) No. 778 of 2019 Interlocutory Application No.2493 of 2019 Page 1 of 3

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

Appellant submitted that the 'Committee of Creditors' has not been

constituted and the Appellant intends to settle the matter with the

Respondent. Today, a Joint Application on behalf of Appellant and 1st

Respondent has been filed, enclosing therein the Settlement Agreement dated

12th August, 2019, which shows that the parties have settled the matter. Ms.

Monalisa Kosaria, Counsel appearing on behalf of 1st Respondent -

Dimension Data India Private ('Operational Creditor') accepted that they have

settled the matter and, therefore, Joint Application has been filed on their

behalf.

3. Mr. Srinivas Thatikonda, 'Interim Resolution Professional' is present

and submits that the Appellant has settled the claim and a Demand Draft of

Rs.5,49,708/- is being handed over to him towards his fee and resolution

cost. He accepts that the 'Committee of Creditors' has not been constituted.

4. In the facts and circumstances, in exercise of inherent powers

conferred upon this Appellate Tribunal under Rule 11 of the NCLAT Rules

2016, we accept the Settlement and set aside the impugned order dated 24th

July, 2019 passed by the Adjudicating Authority (National Company Law

Tribunal), Bengaluru Bench and dispose of the Company Petition (IB)

No.153/BB/2017 (preferred by 1st Respondent- M/s Dimension Data India

Pvt. Ltd.). The terms of Agreement of Settlement reached between the parties

be treated as direction of this Appellate Tribunal and the Appellant,

Managing Director, Directors, Officers and the 'Corporate Debtor' are

directed to implement the same in its 'letter and spirit', failing which, it will

Company Appeal (AT) (Insolvency) No. 778 of 2019 Interlocutory Application No.2493 of 2019 Page 2 of 3 be open to the Respondent to file Petition for initiation of contempt

proceeding and for the revival of the Appeal and the Company Petition.

5. In the result, order (s) passed by Ld. Adjudicating Authority appointing

'Interim Resolution Professional', declaring moratorium and all other order

(s) passed by Adjudicating Authority pursuant to impugned order and action

taken by the 'Resolution Professional' are set aside. The application

preferred by the Respondent under Section 9 of the I&B Code is disposed of

as withdrawn. The Adjudicating Authority will now close the proceeding.

The Respondents Company is released from all the rigour of law and is

allowed to function independently through its Board of Directors from

immediate effect.

6. The appeal is allowed with aforesaid observations and directions. No

costs.

[Justice S. J. Mukhopadhaya] Chairperson

[Justice A.I.S. Cheema] Member (Judicial)

[Kanthi Narahari] Member (Technical)

Ash/GC

Company Appeal (AT) (Insolvency) No. 778 of 2019 Interlocutory Application No.2493 of 2019 Page 3 of 3