Vineet Wadhwa vs Technology Development Board & Ors

Vineet Wadhwa ...Appellant

Vs

Technology Development Board & Ors. ....Respondents

Present: For Appellant: Mr. Alok Shukla, Advocate. For Respondents:

ORDER

13.09.2018: Having heard learned counsel for the Appellant and being satisfied of the grounds shown delay of 3 days in preferring the appeal is condoned. I.A. No. 1350 of 2018 stands disposed of.

2. This appeal has been preferred by Mr. Vineet Wadhwa, shareholder of M/s Logic Eastern (India) Private Limited, Noida (Corporate Debtor) against order dated 18th July, 2018 whereby the application under Section 7 of the I&B Code preferred by the Respondent - 'Technology Development Board' has been admitted, order of moratorium has been passed and Interim Resolution Professional has been appointed.

3. Learned counsel appearing on behalf of the Appellant submitted that though there was a debt payable to the Respondent - 'Financial Creditor' but there was no default as the date of payment was postposed to subsequent date. Reliance was placed on the letter issued by the Respondent dated 5th February, 2016 which relates to proposed settlement dated 22.01.2016 which was submitted before the Dispute Resolution Committee on the request of the Corporate Debtor and reads as follows:

Company Appeal (AT) (Insolvency) No. 523 of 2018 -2-

Company Appeal (AT) (Insolvency) No. 523 of 2018 -3-

4. We enquired from the learned counsel for the Appellant as to whether any agreement was signed in terms of the proposal dated 5th February, 2016, in reply to which it is submitted that no agreement has been reached because of laches on part of the Respondent - Financial Creditor, as it intimated that the Corporate Debtor has failed to pay the installment, though the Corporate Debtor paid certain installments. Reliance is placed on the Section 62 of 'The Indian Contract Act, 1872' which relates to 'effect of novation, rescission, and alteration of contract'.

5. We have heard learned counsel for the Appellant and perused the records. The Adjudicating Authority has taken into consideration the fact that the Application under Section 7 has been filed by the Financial Creditor in Form-1 is complete, which is also not disputed by the Appellant. It is true that on the request of the Corporate Debtor a proposed settlement was forwarded to the Respondent, which was placed before the 'Dispute Resolution Committee' on 30th January, 2016, which on consideration made recommendations as reflected in the letter dated 5th February, 2016 and quoted above. There is nothing on record to suggest that the Corporate Debtor thereafter paid Rs.50 lakh per year in quarterly instalments till the repayment of the entire principal amount. Even in terms of the proposed terms of settlement, no installment having made, no fresh agreement was reached. The Corporate Debtor also not moved before any court of competent jurisdiction or authority raising such grievance

6. Learned counsel for the Appellant submitted that there is an arbitration proceeding pending, but such ground cannot be accepted to set aside the order.

Company Appeal (AT) (Insolvency) No. 523 of 2018 -4-

7. Admittedly, there is a debt and default having committed by Corporate Debtor no interference is called for. In absence of any merit, the appeal is dismissed. No costs.

[Justice S. J. Mukhopadhaya] Chairperson

[Balvinder Singh] Member (Technical) am/uk

Company Appeal (AT) (Insolvency) No. 523 of 2018