Sanjay Jalan vs Vasavi & Company & Anr
- CitationCompany Appeal (AT) (Ins) No. 789 of 2020
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal holds that where a pre-existing dispute between the parties has been fully and finally settled by agreement after the appeal was filed, nothing survives for adjudication and the appeal is disposed of on that basis. The Tribunal further holds that, once the operational creditor has settled the claim, it is appropriate to direct the operational creditor to file an application for withdrawal of the insolvency petition under Section 12A of the Insolvency and Bankruptcy Code before the Adjudicating Authority, with the Adjudicating Authority directed to dispose of that application within a week of its filing.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Vs. M/s Vasavi & Company & Anr. ...Respondents
Present: For Appellant: Mr. Nithin Chowdary Pavuluri, Advocate. For Respondents: Mr. Pulkit Shivastava, Advocate for R-1, Mr. A.Chandra Shaker, Advocate for R-2 (IRP)
ORDER
(Through Virtual Mode) 28.09.2020: It is represented on behalf of the Appellant that the claim
was fully settled in regard to the pre-existing dispute and in fact the
Appellant had prepared two Demand Drafts in full and final settlement of
the whole claim raised by the Respondent No. 1/Operational Creditor in the
Section 9, Petitions that is Rs.1,04,72,633/- in this connection the
necessary details of the demand draft run as under:
i. Vide DD. No. 503029 drawn at ICICI Bank, on 15.09.2020 for an amount of Rs.
64,16,888 (The Principle amount as claimed in C.P. (IB) No. 441/9/HDB/2019, before NCLT, Hyderabad)
ii. Vide DD. No. 503028 drawn at ICICI Bank, on 15.09.2020 for an amount of Rs.
40,55,745 (The interest claimed on the Principle amount as claimed in C.P (IB) No. 441/9/HDB/2019, before NCLT, Hyderabad)
The above offer for settlement made by the Appellant was accepted
by the Respondent No. 1/Operational Creditor on 22.09.2020 and this fact
is not disputed on behalf of the Respondent No.1/Operational Creditor. 2
Thereafter, the 'Settlement Agreement' between the Appellant and the
Respondent No. 1/Operational Creditor was signed on 22.09.2020, to settle
the entire claim of the Respondent No. 1/Operational Creditor fully and
finally.
In view of the fact that the claim/dispute between the parties had
been settled fully and finally, this Tribunal, at this stage opines that nothing
survives for Adjudication in the present Appeal and accordingly the same
is disposed of.
Before parting with the case, this Tribunal, deems it fit and proper in
directing the Applicant/Operational Creditor to file necessary withdrawal
Application before the 'Adjudicating Authority' (NCLT) Hyderabad, as per
Section 12 A of the I &B Code, within four days from today. On such
Application being filed by the Applicant/Operational Creditor, the same
shall be disposed of by the 'Adjudicating Authority' (NCLT) Hyderabad
within a week thereafter.
[Justice Venugopal M.] Member (Judicial)
[V.P.Singh] Member (Technical)
[Ms. Shreesha Merla] Member (Technial) sr/nn Company Appeal (AT) (Ins) No. 789 of 2020
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