Shiv Kumar Eashwaran vs Ntc Logistics India (P) Ltd.& Anr

Shiv Kumar Eashwaran ...Appellant

Vs

NTC Logistics India (P) Ltd. ...Respondent

Present: For Appellant: Mr. Goutham Shivshankar, Advocate.

For Respondent: Mr. Tushar Bhushan and Mr. Pavan Bhushan, Advocates for R-1. Mr. V. Venkadasalam, Advocate for IRP.

ORDER

10.12.2019: 'NTC Logistics India (P) Ltd.' (Operational Creditor) moved

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

(hereinafter referred to as 'I&B Code') for initiation of Corporate Insolvency

Resolution Process of 'M/s Canadian Crystalline Water India Limited' (Corporate

Debtor). The Adjudicating Authority (National Company Law Tribunal), Division

Bench-I, Chennai, by impugned order dated 7th November, 2019 admitted the

application, which is under challenge.

2. On 28th November, 2019, when the matter was taken up, learned counsel

for the Appellant submitted that the Appellant has settled the claim with the

Respondent - Operational Creditor and Committee of Creditors has not been

constituted. Notice was issued on Respondents including the Interim Resolution

Professional.

Company Appeal (AT) (Insolvency) No. 1374 of 2019 -2-

3. Mr. Tushar Bhushan, learned counsel appears on behalf of 1st Respondent

and submits that the Appellant on behalf of the Corporate Debtor has settled the

claim and dues as per settlement has been paid prior to constitution of the

Committee of Creditors.

4. Mr. V. Venkadasalam, Advocate appears on behalf of the Interim

Resolution Professional. He submits that the Interim Resolution Professional

has not been paid fee and cost incurred by him. He further states that a sum of

Rs.2/- Lakh was paid to the Interim Resolution Professional and another sum of

Rs.2.75/- Lakhs is to be paid.

5. We have heard learned counsel for the parties and find that the Committee

of Creditors has not been constituted, which is also accepted by learned counsel

for the Interim Resolution Professional. Interim Resolution Professional having

worked for about 20 days, has already incurred cost against publication of notice

- Rs.15,000/- approx., engagement of lawyer - Rs.1/- Lakh approx., travelling

expenses - Rs.50,000/- approx., therefore, we assess the total fee and cost of the

Interim Resolution Professional at Rs.2.75/- Lakh. However we round it up at

Rs.3.00 Lakhs. The Interim Resolution Professional having already paid a sum

of Rs.2 Lakhs, the Appellant will pay another sum of Rs.1 Lakh to the Interim

Resolution Professional immediately but not later than 15 days.

Company Appeal (AT) (Insolvency) No. 1374 of 2019 -3-

6. In view of the fact that the parties have settled the matter, in exercise of

power conferred under Rule 11 of NCLAT Rules, 2016 and following the decision

of Hon'ble Supreme Court in 'Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of

India & Ors.', Writ Petition (Civil) No. 99/2018, reported in 2019 SCC

OnLine SC 73, we set aside the order dated 7th November, 2019 passed by the

Adjudicating Authority and dispose of the application under Section 9 as

withdrawn. The Corporate Debtor is released from rigour of Corporate

Insolvency Resolution Process. The Interim Resolution Professional will

handover all the records and assets of the Corporate Debtor, immediately. If the

amount of Rs.1/- Lakh is not paid to the Interim Resolution Professional within

15 days, the present order will stand recalled and this Appellate Tribunal may

revive the Corporate Insolvency Resolution Process.

The Appeal is disposed of with aforesaid observations and actions.

[Justice S. J. Mukhopadhaya] Chairperson

[Justice Bansi Lal Bhat] Member (Judicial)

am/gc

Company Appeal (AT) (Insolvency) No. 1374 of 2019