Sandip Malik vs Watchdata Technologies (India) Pvt. ...

Sandeep Malik ...Appellant

Vs

Watchdata Technologies (India) Pvt. Ltd. & Anr. ...Respondents

Present: For Appellant: Mr. Suren Uppal, Mr. Vikas Bhardwaj and Mr. Amit Bhardwaj, Advocates. For Respondents: Mr. S. Narendra Kumar, Advocate for R-1. Mr. Vinod Chaurasia, Advocate for IRP. Mr. Pankajj Aroraa, CA, IRP in person.

ORDER

25.06.2019: It is submitted that the parties have arrived at an amicable

settlement and the 'Terms of Settlement' have been reduced to writing. I.A. No.

1969 of 2019 has been filed enclosing the Terms of Settlement Deed executed on

23rd June, 2019 inter-se Mr. Sandeep Malik, Director of 'Rosmaerta Technologies

Ltd.' (Corporate Debtor) and the Operational Creditor - 'Watchdata Technologies

(India) Pvt. Ltd.', in terms whereof the Appellant has agreed to pay a sum of Rs.92

Lakhs to the Operational Creditor towards full and final discharge of the claim

made by the Operational Creditor.

2. In terms of the settlement, learned counsel for the Appellant handed over

a Demand Draft No.509423 dated 21.06.2019 issued by ICICI Bank (02) M G

Road, Bangalore Branch for Rs.92,00,000/- (Rupees Ninety Two Lakh Only) -2-

in name of 'Watchdata Technologies (India) Pvt. Ltd.' to learned counsel for 1st

Respondent in open court for onward transfer to the Operational Creditor (1st

Respondent).

3. Shri Vinod Chaurasia, learned counsel representing Mr. Pankajj Aroraa,

Interim Resolution Professional admits that the IRP has received the fee in

entirety alongwith expenditure incurred during the resolution process and

submits that nothing remains outstanding.

4. Learned counsel for 1st Respondent - Operational Creditor admits that the

claim of the Operational Creditor has been satisfied in full. Thus the claim in

respect whereof default was alleged and Corporate Insolvency Resolution Process

was initiated in terms of impugned order dated 14th June, 2019 stands satisfied.

Learned counsel for Interim Resolution Professional submits that the Interim

Resolution Professional after his appointment was just at the threshold stage of

commencing the process and the Committee of Creditors was yet to be

constituted. Thus, in terms of observations of Hon'ble Supreme Court at para

52 in its decision in 'Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.',

Writ Petition (Civil) No. 99/2018, reported in 2019 SCC OnLine SC 73, there is no

legal impediment in entertaining the settlement worked out between the parties,

which appears to be conscionable and the Settlement Deed is taken on record.

Company Appeal (AT) (Insolvency) No. 647 of 2019 -3-

In view of the resolution of conflict inter-se the parties by satisfaction of the claim

of the Operational Creditor by the Appellant, the order of admission for initiation

of the Corporate Insolvency Resolution Process cannot be supported and same

is set aside. Learned Adjudicating Authority (National Company Law Tribunal),

New Delhi Bench shall now close the proceedings.

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

'Interim Resolution Professional', declaring moratorium, freezing of account, and

all other order(s) passed pursuant to impugned order and action taken by the

'Interim Resolution Professional', including the advertisement published in the

newspaper calling for applications, if any, and actions pursuant thereto are

declared illegal and are set aside. The Interim Resolution Professional is

discharged of his obligations. The 'Corporate Debtor' is released from the

rigour of law and is allowed to function independently through its Board of

Directors from immediate effect.

6. The appeal stands disposed of with aforesaid observations.

[Justice Bansi Lal Bhat] Member (Judicial)

am/gc

Company Appeal (AT) (Insolvency) No. 647 of 2019