In the matter of Rajesh Chopra Vs. FP India Project Management Consultancy Services Pvt. Ltd. & Anr. CA(AT)(ins). No. 999 of 2019

Heard learned Counsel for the Appellant and Advocate for the Operational Creditor – Shri Vivek Malik. Advocate – Shri Chandra Bhushan Prasad for IRP is present. Counsel for Appellant and Counsel for Respondent No.1 – Operational Creditor say that IA No.3799 of 2019 is filed by Operational Creditor to withdraw Application filed under Section 9 of Insolvency and Bankruptcy Code, 2016 (IBC - in short) which has been admitted vide Impugned Order dated 17.09.2019. The IRP - Shri Chandra Prakash is present with the Advocates and confirms that Committee of Creditors (COC – in short) has not yet been constituted. Counsel for both sides state that the dispute between the parties is already settled as per the Settlement Agreement (copy of which is at Annexure 1 –Diary No.27573) which is as follows:-

COC has not been still constituted. Joint Application has been filed for taking on record the above Settlement Agreement. In the Settlement Agreement, the Operational Creditor and the Corporate Debtor have agreed to equally bear and directly pay the balance expenses to the IRP. The Counsel for IRP states that he has already received dues from the Appellant. Counsel for Respondent – Operational Creditor states that the share of Respondent would be paid. Operational Creditor and Corporate Debtor shall equally bear fees payable to IRP, and CIRP costs.

The settlement is taken on record. The Operational Creditor and Corporate Debtor and their Promoters, Directors, Shareholders shall be bound by this Agreement. In view of the aforesaid, in exercise of powers conferred on this Appellate Tribunal under Rule 11 of NCLAT Rules and the decision of the Hon’ble Supreme Court of India in “Swiss Ribbons Pvt. Ltd. & Anr. vs. Union of India & Ors.” in 2019 SCC Online SC 73, we set aside the Impugned Order dated 17th September, 2019 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Court – VI) and allow the Application IA No.3799 of 2019 permitting the Respondent No.1 – Operational Creditor (FP India Project Management Consultancy Services Pvt. Ltd.) to withdraw the Application CP No.IB-809(ND)/2019. The Application under Section 9 is disposed as withdrawn.

The IRP will raise claim of fees payable and CIRP costs incurred with the Operational Creditor and the Corporate Debtor and they are liable to equally pay the amount to the IRP within a month from date of this Order, if not yet paid. In default, the IRP may move this Tribunal for initiating action of contempt against the defaulting party. In such case, it would be open for this Tribunal to recall present Order and to restore the CIRP process.

The Adjudicating Authority will now close the CIRP proceedings and the Corporate Debtor is released from the rigour of Corporate Insolvency Resolution Process and the IRP will hand over the charge to Promoter/Board of Directors of the Corporate Debtor along with records. Appeal is disposed accordingly.

[Justice A.I.S. Cheema]

Member (Judicial)

[Kanthi Narahari]

Member (Technical)

[V.P. Singh]

Member (Technical)