Rushabh Precision Bearings Limited vs Shimnit India Private Limited

Shimnit India Pvt. Ltd. & Anr. ...Applicants

Versus

Rajesh Vora ...Respondent

Present:

For Applicants: Mr. Aman Preet Singh Rahi and Mr. Puneet Thakur, Advocates. For Respondent: Mr. Abhijeet Sinha, Nirnimesh Dube, Ankur S. Kulkarni, Susheel Joseph Cyriac, Advocates

ORDER

16.09.2022: This Contempt Application has been filed for drawing

Contempt Proceeding against the Respondent for violation of the undertaking

given to the Court. This Court while hearing Company Appeal (AT) Ins. No.

536 of 2022 passed following Order on 2nd June, 2022:

"02.06.2022: Shri Abhijeet Sinha, Learned Counsel for the Appellant submits that the entire amount as claimed in Section 7 Application is Rs.22,23,45,748/- which includes interest as on 31/12/2021.

2. He submits that the aforesaid amount along with upto date interest shall be paid to the Appellant provided that the Appellant is given time till 01st week of July.

-2- 3. He submits that the Appellant undertake to pay the said payment. He has also received the Letter of Comfort for payment of the said amount.

4. In view of the aforesaid, we adjourn this Appeal and direct the Appeal to be listed on 07th July, 2022.

5. In the meantime, in pursuance of the Impugned Order, CoC shall not be constituted. However, IRP shall continue the 'Corporate Debtor' as a 'Going Concern'.

6. Learned Counsel for the Appellant submits that he shall be permitted to file undertaking by tomorrow. Prayer allowed. He may file the same by tomorrow.

List this Appeal on 07th July, 2022."

2. In pursuance of the said Order, an Undertaking was also submitted by

the Appellant to the Court, subsequently by the Judgement of this Tribunal

dated 24th August, 2022, the Appeal filed by the Appellant was dismissed

affirming the Order of the Adjudicating Authority admitting Section 7

Application. This Tribunal while dismissing the Appeal has also noticed the

undertaking given in pursuance of the Order dated 2nd June, 2022 in

paragraph 15 and 16 of the Judgment.

3. Learned Counsel for the Applicant submits that since the undertaking

was false and not honoured hence contempt be initiated against the

Respondent.

4. This Court passed Order on 2nd June, 2022 as noted above where the

Appellant stated that they are ready to pay entire amount as claimed in Section

Contempt Case 22/2022 in Company Appeal (AT) (Insolvency) No. 536/2022 -3-

7 Application and time be allowed. It is clear that in pursuance of the Order

dated 2nd June, 2022 amount was not deposited by the Appellant and the

Appeal was subsequently heard on 01st August, 2022 and vide Judgment

dated 24th August, 2022 dismissed.

5. In the facts of the present case, we are of the view that present is not a

case for initiating any contempt proceeding where the Appellant was unable

to deposit the amount. They were not entitled to benefit of the Order passed

by the Court and subsequently the Appeal resulted in dismissal by this

Tribunal. We are not inclined to initiate any contempt proceeding in the facts

of the present case. The Contempt Application is dismissed.

[Justice Ashok Bhushan] Chairperson

[Mr. Barun Mitra] Member (Technical)

Basant/nn

Contempt Case 22/2022 in Company Appeal (AT) (Insolvency) No. 536/2022