Savinder Singh vs Alloysmin Industries & Anr

07.05.2019 'Alloysmin Industries' (Operational Creditor) filed an

application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for

short, the 'I&B Code') against 'Raman Casting (P) Ltd.' (Corporate Debtor) for

initiation of 'corporate insolvency resolution process' which was subsequently,

rejected by the Adjudicating Authority (National Company Law Tribunal), New

Delhi Bench on 17th September, 2018. 'Alloysmin Industires' (Operational

Creditor) had preferred the appeal wherein this Appellate Tribunal in 'Company

Appeal (AT) (Insolvency) No. 684 of 2018' by order dated 21st January, 2019

allowed the case and set aside the impugned order dated 17th September, 2018

and the case was remitted to the Adjudicating Authority to admit the application

under Section 9 of the I&B Code without going into other issues, in view of

deemed service on the 'Corporate Debtor' but ordered to issue fresh notice to 2

enable the parties to settle the matter. After such remand, the Adjudicating

Authority (National Company Law Tribunal), New Delhi, Court-III admitted the

case on 10th April, 2019 in absence of any settlement, which is under challenge

in this appeal. Learned counsel for the appellant submitted that the 'Terms of

Settlement' were reached between the parties on 29th April, 2019 and the amount

in 'Terms of the Settlement' has already been paid. It was also submitted that

the 'Committee of Creditors' have not been constituted.

2. Mr. Sagar Aggarwal, learned counsel appearing on behalf of the

'Operational Creditor' accepted that the matter has been settled in terms of the

'Settlement Agreement'. Mr. Brijesh Kumar, Interim Resolution Professional has

appeared in person. He also informs that the 'Committee of Creditors' has not

been constituted and the claims are not received till date. He further informs

that his fee is Rs. 1 Lakh and he has incurred expenditure of Rs. 20,000/-

towards publication of notice etc.

3. Taking into consideration the fact that the 'Corporate Debtor' is a small

scale industry and the parties have reached settlement; the 'Committee of

Creditors' have not been constituted and till date no claim has been received

except the 'Operational Creditor' (Respondent before us), who also has not filed

a claim, in view of the settlement; we set aside the impugned order dated 10th

April, 2019 and allow the respondent 'Operational Creditor' to withdraw the

application under Section 9 of the I&B Code. The Adjudicating Authority will

close the proceedings.

4. So far as the fee and resolution cost of the 'Interim Resolution Professional'

is concerned, the Corporate Debtor will pay a sum or Rs. 1,20,000/- in his favour

within three weeks.

Company Appeal (AT) (Insolvency) No. 497 of 2019 3

5. In effect, 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 Respondent 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)

/ns/gc

Company Appeal (AT) (Insolvency) No. 497 of 2019