NCLAT Delhi Stays Insolvency Process Against BPTP LTD., As Parties Enter Settlement
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Judicial Member) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Sudhanshu Tripathi v M/s RBCL Projects Pvt. Ltd. & Anr., has stayed the initiation of Corporate Insolvency Resolution Process ("CIRP")...
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Dr. Alok Srivastava (Judicial Member) and Shri Barun Mitra (Technical Member), while adjudicating an appeal filed in Sudhanshu Tripathi v M/s RBCL Projects Pvt. Ltd. & Anr., has stayed the initiation of Corporate Insolvency Resolution Process ("CIRP") against BPTP Ltd. by the Adjudicating Authority, as Parties have entered settlement.
Background Facts
M/s BPTP Ltd. ("Corporate Debtor") is a company engaged in real estate sector in Northern India with several successful residential and commercial projects at Gurgaon, Faridabad and NOIDA. The Corporate Debtor had given work orders to M/s RBCL Projects Pvt. Ltd. ("Operational Creditor/Respondent") for construction of Group Housing Projects situated at Faridabad. The Corporate Debtor failed to pay the outstanding invoices of the Operational Creditor, arising out of final bills.
The Operational Creditor had issued a Demand Notice dated 02.04.2019 to the Corporate Debtor under Section 8 of Insolvency and Bankruptcy Code, 2016 ("IBC"), to which no reply was received. Subsequently, the Operational Creditor had also invoked arbitration on 09.02.2021.
The Operational Creditor filed a petition under Section 9 of IBC, seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor. The Adjudicating Authority had observed that the Operational Creditor has established default on the part of Corporate Debtor in payment of operational debt. Accordingly, on 14.11.2022 the Section 9 Petition was admitted and CIRP was initiated against the Corporate Debtor. Mr. Rakesh Kumar Gupta was appointed as the Interim Resolution Professional (IRP).
The Corporate Debtor through Mr. Sudhanshu Tripathi ("Appellant") filed an appeal before the NCLAT against the Order dated 14.11.2022, contending that the Parties have entered settlement on 15.11.2022.
Decision Of NCLAT
The NCLAT Bench observed that the Parties have entered settlement and the Operational Creditor also made a statement that it has already received the amount under the Settlement. Thus, the Bench stayed the Order dated 14.11.2022 and accordingly the CIRP has been stayed. The next date of hearing is 23.11.2022.
Case Title: Sudhanshu Tripathi v M/s RBCL Projects Pvt. Ltd.
Case No.: Comp. App. (AT) (Ins.) No. 1382 of 2022
Counsel for Appellant: Mr. Abhijeet Sinha, Mr. Kaushik Poddav, Advocates. Ms. Ruby Singh, Mr. Vishal Gehrana, Mr. Varuu Khanaa, Mr. Lakshya Khanna, Mr. Vijay Kaundal, Mr. Nitish Sharma, Advocates.
Counsel for Respondent: Mr. Sandeep Bajaj, Mr. Vipul Jey, Advocates for R1.