Sham Lal vs Ramboll India Pvt. Ltd
- CitationCompany Appeal (AT) (Ins.) No. 148 of 2019
Ratio decidendi
The rule this decision rests on
Where an application under Section 9 of the Insolvency and Bankruptcy Code has been settled between the parties before the constitution of the Committee of Creditors, the Tribunal may, in exercise of its inherent power under Rule 11 of the National Company Law Appellate Tribunal Rules, 2016, set aside the admission order, the appointment of the Interim Resolution Professional, the declaration of moratorium and all consequential orders and actions, dismiss the petition, and permit the operational creditor to withdraw the Section 9 application.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Sham Lal ...Appellant
Versus
Ramboli India Pvt. Ltd. & Anr. ...Respondents
Present: For Appellant : Ms. Anusuya Salwan, Advocate
For 1st Respondent: Ms. Kritika Kohli, Manager (Legal)
For 2nd Respondent : Ms. Maya Gupta, IRP
ORDER
09.04.2019 Learned counsel for the appellant submitted that the
settlement is reached between the parties on 28th March, 2019 prior to the
constitution of 'Committee of Creditors'. The terms of 'Settlement Deed' has
been enclosed with the affidavit filed today, which will be kept on record.
Ms. Kritika Kohli, Manager (Legal) appears on behalf of 'Ramboll India Pvt.
Ltd.' (Operational Creditor) and submits that in terms of the 'Settlement'
payment has been received. Ms. Maya Gupta, 'Interim Resolution Professional'
appears in person and submits that her entitlement of Rs. 3.50 Lakhs towards
fee and resolution cost has been paid.
In view of the facts that the parties have settled the matter prior to the
constitution of the 'Committee of Creditors' and in view of the decision of the -2-
Hon'ble Supreme Court in 'Swiss Ribbons Pvt. Ltd. & Anr', - '2019 SCC Online
SC73' and in exercise of inherent powers under Rule 11 of the National Company
Law Appellate Tribunal Rules, 2016, we set aside the impugned order dated 7th
January, 2019 and dismiss the C.P. (IB) No. -976(ND)/2018 and allow the
respondent to withdraw the application under Section 9 on the file of
Adjudicating Authority (NCLT), New Delhi Bench, New Delhi.
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.
The appeal is allowed with aforesaid observations and directions. No
costs.
[Justice S.J. Mukhopadhaya] Chairperson
[ Justice A.I.S. Cheema ] Member (Judicial)
/ns/sk/
Company Appeal (AT) (Ins.) No. 148 of 2019
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