T. Karuppasamy vs Vincot Agencies & Anr

T. Karuppasamy ...Appellant

Versus

Vincot Agencies & Anr. ...Respondents

Present: For Appellant : Mr. S.S. Madhavan and Mr. Ananda Selvam, Advocates

For Respondents: Mr. C. Rubavathi, Advocate for R-1 Mr. P.K. Kar and Mr. A.P. Bharat Kumar, Advocates

ORDER

03.07.2019 'M/s. Vincot Agencies' (Operational Creditor) filed an

application u/s 9 of the 'Insolvency and Bankruptcy Code, 2016 (for short, 'the

I&B Code') against 'M/s. Umayal Spinners Pvt. Limited' (Corporate Debtor),

which having admitted on 20th May, 2019 by the Adjudicating Authority

(National Company Law Tribunal), Division Bench, Chennai, the present appeal

has been preferred by Mr. T. Karuppasamy, Managing Director of the 'Corporate

Debtor'.

2. On 3rd June, 2019, the learned counsel for the Appellant and the 1st

Respondent (Operational Creditor) appeared and intimated that the Appellant

reached the settlement with the 'Operational Creditor' and the 'Committee of

Creditors' has not yet been constituted. In that background, we allow them to

settle the dues before the constitution of the 'Committee of Creditors'. 2

3. Today, it is informed that the in terms of the 'Settlement' the total dues of

Rupees 81,38,106/- has been paid by the Appellant in favour of the Respondent

- 'M/s. Vincot Agencies'. Learned counsel for the Respondent also agrees. It is

also accepted by 'Mr. V. Venkata Sivakumar, Interim Resolution Professional

appeared and accepted that 'Committee of Creditors' has not yet been

constituted though he has collated some claims. It is submitted that the fee and

resolution cost payable will be paid by the Appellant. Learned counsel for the

Appellant submits that he will pay the fee and the resolution cost to Mr. V.

Venkata Sivakumar, IRP within three week.

4. In the facts and circumstances exercising inherent powers under Rule 11

of the National Company Law Appellate Tribunal Rules, 2016, we allow the

settlement and set aside the impugned order dated 20th May, 2019. We allow

the 1st Respondent to withdraw the application u/s 9 filed by the 1st Respondent

which is dismissed as withdrawn. The proceedings before the Adjudicating

Authority (National Company Law Tribunal), Division Bench, Chennai is closed.

5. The Appellant is directed to pay the total fee and the resolution cost to the

'Interim Resolution Professional' within 3 weeks.

6. 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.

Company Appeal (AT) (Insolvency) No. 583 of 2019 3

The appeal is allowed with aforesaid observations and directions. No

costs.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice A.I.S. Cheema ] Member (Judicial)

[ Kanthi Narahari ] Member (Technical) /ns/gc

Company Appeal (AT) (Insolvency) No. 583 of 2019