Vinay Gupta vs M/S Oswal Minerals Limited And Anr

Vinay Gupta ...Appellant

Versus

Oswal Minerals Ltd. & Anr. ...Respondents

Present: For Appellant: Dr. Pankey Garg, Mr.Yaksh Garg, Mr. Vishal Choudhary, Ms. Astha Chetan, Advocates For Respondent: Mr. Saurabh Jain, Advocate for R-2 Mr. Abindra Maheshwari, Advocate

ORDER

27.04.2023: Heard Learned Counsel for the Appellant.

2. This Appeal has been filed against the Order dated 03.01.2023 by which

order the Adjudicating Authority has admitted Section 9 Application of I&B

Code, 2016. Application was filed for principal debt of Rs. 11,83,800/-. The

Corporate Debtor has filed the Reply on 17th September, 2019 which has been

noticed by the Adjudicating Authority where there was no denial of the debt.

The Adjudicating Authority admitted Section 9 Application.

3. Learned Counsel for the Appellant challenging the Order submits that

there was settlement between the parties and the Letter dated 12th February,

2020 was sent to the Operational Creditor where it was prayed that upfront

payment of Rs. 2 Lakhs will be made and rest payment will be made within

90 days. It is submitted that Rs. 2 Lakhs was paid on 25.02.2020 but the

Operational Creditor did not bring into notice of the Court about the

settlement hence the Adjudicating Authority admitted the Application. -2-

4. We have considered the submission of Learned Counsel for the

Appellant and perused the record.

5. Letter dated 12th February, 2020 which has been relied on by Learned

Counsel for the Appellant is to the following effect:

"Date 12.02.2020 To, The Concerned Official/Authorized Officer/Counsel, Oswal Minerals Ltd., Sir, This letter is in reference to the case pending before the Hon'ble NCLT, Bench III, New Delhi for initiation of the Insolvency proceedings against the alleged dues amounting to Rs. 11,83,800/- (Eleven Lacs Eighty Three Thousand, Eight Hundred Only) arising out of the invoices pertaining to Zinc Ingots. We wish to submit that due to certain contingencies the company-satellite have been non operational and even the creditors of the company backed down from the time period October 2018 - September 2019. We wish to inform you that at present the company is running its affairs and progressing up to retain its usual and optimum business.

We hereby submit our esteemed proposal to ensure that we continue without good business relations ahead. We hereby propose to settle the Principal amount within a span of 90 days with upfront payment of Rs. 2 Lacs, which shall be handed over to you at the earliest or before the Hon'ble NCLT, Bench III, New Delhi. We further request you to waive off or reduce the interest amounting to Rs. 52,248/-.

We look forward for your acceptance. Yours faithfully

Company Appeal (AT) (Insolvency) No. 320/2023 -3-

Authorised Representative M/s. Satellite Cables Private Limited"

6. Letter itself indicates that Appellant offered to make the entire payment

within 90 days i.e. before 12th May, 2020. It is not the case of the Appellant

that balance payment has been made to the Operational Creditor. When the

case was taken on 3rd January, 2023, the Operational Debt was still there and

the Adjudicating Authority did not commit any error in admitting Section 9

Application there being debt and default.

7. We thus do not find any merit in the Appeal. The Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Mr. Barun Mitra] Member (Technical)

Basant/nn

Company Appeal (AT) (Insolvency) No. 320/2023