NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI

I. A. No.229 of 2019 in

Company Appeal (AT) (Insolvency) No. 79 of 2019

IN THE MATTER OF:

Amit Katyal

…Appellant

Vs

Manjula Khullar & Ors.

….Respondents

Present:

For Appellant:

Dr. Abhishek Manu Singhvi, Mr. Amit Sibal and

Mr. Virender Gnada, Sr. Advocates with Mr. Pulkit

Deoria, Ms. Devanshi and Mr. Prashant Katara,

Advocates.

For Respondents: Mr. Praveen Kumar Aggarwal, Advocate for R-1 to

3 (Financial Creditors).

Mr.

Ashok

Kumar

Juneja

and

Mr.

Akash

Srivastava, Advocates for IRP.

O R D E R

04.02.2019:

‘Manjula Khullar and Ors.’ filed application under Section 7

of the I&B Code for initiation of Corporate Insolvency Resolution Process against

‘M/s Krrish Shalimar Projects Pvt. Ltd.’ (Corporate Debtor). The Adjudicating

Authority by impugned order dated 16^th January, 2019 admitted the application

being C. P. No. (IB)-1148(PB)/2018. During the pendency of the aforesaid

petition and this appeal and before constitution of Committee of Creditors,

Mr. Amit Katyal, Shareholder of the Corporate Debtor reached settlement with

the Respondent No. 1, 2 and 3 (Financial Creditors) on 27^th January, 2019.

Thereafter Appellant filed application for withdrawal of the Insolvency Resolution

Proceeding in view of the decision of Hon’ble Supreme Court in ‘Swiss Ribbons

Pvt. Ltd. & Anr. Vs. Union of India & Ors.’, Writ Petition (Civil) No. 99/2018 dated

25^th January, 2019, wherein the Hon’ble Supreme Court observed as follows:

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“52. It is clear that once the Code gets triggered by admission

of a creditor‘s petition under Sections 7 to 9, the proceeding

that is before the Adjudicating Authority, being a collective

proceeding, is a proceeding in rem. Being a proceeding in rem,

it is necessary that the body which is to oversee the resolution

process must be consulted before any individual corporate

debtor is allowed to settle its claim. A question arises as to

what is to happen before a committee of creditors is

constituted (as per the timelines that are specified, a

committee of creditors can be appointed at any time within 30

days from the date of appointment of the interim resolution

professional). We make it clear that at any stage where the

committee of creditors is not yet constituted, a party can

approach the NCLT directly, which Tribunal may, in exercise

of its inherent powers under Rule11 of the NCLT Rules, 2016,

allow or disallow an application for withdrawal or settlement.

This will be decided after hearing all the concerned parties and

considering all relevant factors on the facts of each case.”

2.

In the aforesaid background, the prayer has been made before this

Appellate Tribunal to pass appropriate order under Rule 11 of the National

I. A. No.229 of 2019 in Company Appeal (AT) (Insolvency) No. 79 of 2019

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Company Law Appellate Tribunal Rules, 2016 as had been passed in the case of

‘Arjun Puri Vs. Kunal Prasad & Ors.’ in Company Appeal (AT) (Insolvency) No. 52

of 2019, disposed of on 31^st January, 2019.

3.

Learned counsel appearing on behalf of the Resolution Professional

accepts that no Committee of Creditors was constituted and the parties have

reached settlement. This is also accepted by learned counsel for Respondent

Nos. 1, 2 and 3 (Financial Creditors).

4.

Mr. Rakesh Kumar, learned counsel appears on behalf of one Mr. Jyoti

Handa, who is not party to the present appeal. He submits that he also filed

application under Section 7 of the I&B Code against the same Corporate Debtor

but in view of the admission by impugned order dated 16^th January, 2019, the

application has been disposed of by order dated 16^th January, 2019, which reads

as follows:-

“ORDER

In

connected

matter

namely

C.P.

No.

(IB)-

1148(PB)/2018, Manjula Khullar & Ors. v. M/s. Krrish

Shalimar Projects Pvt. Ltd. we have already initiated the

Corporate

Insolvency

Resolu