Mr. T.S.N. Raja, R.P. of VBC Industries Ltd. Vs. C. Srinivasa Reddy – NCLAT New Delhi

I. Case Reference

Case Citation : (2021) 209 NCLAT
Case Name : Mr. T.S.N. Raja, R.P. of VBC Industries Ltd. Vs. C. Srinivasa Reddy
Corporate Debtor : VBC Industries Ltd.
Appeal No. : Company Appeal (AT) (Ins) No.616 – 617 of 2020 [Arising out of Orders dated 23.04.2020 and 11.06.2020 passed by National Company Law Tribunal, Hyderabad Bench in CP (IB) No.302/7/HDB/2017]
Judgment Date : 01-Mar-21
Court/Bench : NCLAT New Delhi
Act : Insolvency & Bankruptcy Code 2016
Present for Appellant(s) : Shri Ankur Khandelwal and Shri Himanshu Handa, Advocates
Present for Respondent(s) : Shri Mithun Shashank, Advocate
Member (Judicial) : Justice A.I.S. Cheema
Member (Technical) : Dr. Alok Srivastava

II. Brief about the decision

III. Full text of the judgement

(Virtual Mode)

01.03.2021 Advocate Shri Mithun Shashank appearing on behalf of all the Respondents, submits that the Respondents have received the amounts as recorded in Para – 3(g) of the Chart recorded in Impugned Order dated 23.04.2020 (passed by Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench, Special Bench)) and there is no dispute left with regard to those amounts.

Learned Counsel for the Appellant – Resolution Professional submits that as the learned Counsel for Respondents have made statement with regard to receipt of the amounts as mentioned in the Chart in para – 3 (g) of the Impugned Order, the Resolution Professional has given him instructions to withdraw the Appeal which he has filed with regard to challenge to the First Impugned Order, I.A. 298 of 2020 in CP (IB) No.302/7/HDB/2017 (Annexure A-1 – Page 57). It is further requested by Appellant to quash I.A. 317 of 2020 which was filed by the Respondents to initiate action of contempt in which Notice has been issued vide Second Impugned Order dated 11.06.2020 (Annexure A-2 – Page 63), as the payment as per First Impugned Order has been made and as there was no intention to defy Orders.

The learned Counsel for the Respondents submits that as the Respondents have received the amounts, as mentioned in para – 3(g) of the first Impugned Order dated 23rd April, 2020, the Appeal may be allowed to be withdrawn with regard to First Impugned Order. He, however, submits that the IA 317 of 2020 (copy of which is filed at Annexure A-14) in which Notice has been issued by the second Impugned Order, no Orders are necessary as the Respondents will make a request properly to the Adjudicating Authority.

It appears to us that when the amounts have been paid is an admitted position, and dispute regarding that has not survived, it would not be appropriate to let the Contempt Case continue for non-compliance of the First Impugned Order.

For reasons mentioned above, the present Appeal is disposed as withdrawn with regard to the First Impugned Order dated 23rd April, 2020 (Annexure A-1) and we quash action of contempt initiated vide I.A. 317 of 2020, and Second Impugned Order (Annexure A-2) in that regard.

Present Appeal is disposed accordingly.

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

[Dr. Alok Srivastava]
Member (Technical)