2020 (8) TMI 430 - Tri - Companies Law

Settlement Agreement Ends Company Petitions

The National Company Law Tribunal, Kochi Bench, affirmed the maintainability of company petitions filed under sections 241 and 242 of the Companies Act, ... Application for withdrawal of all the civil and criminal and company cases - Loss of faith between the promotors - sections 241 and 242 of the Companies Act, 2013 - HELD THAT:- In view of the mediation agreement between the petitioner and the respondents, this Tribunal is of the view that no further issues survive to be adjudicated in the company petitions pending before this Bench. Taking note of the mediation agreement and withdrawal application filed by the petitioners and considering the facts stated above, both the parties are directed to comply with the mediation agreement made between them. Petition withdrawn. Issues Involved:1. Maintainability of the company petitions under sections 241 and 242 of the Companies Act, 2013.2. Settlement through mediation and withdrawal of company petitions.Issue 1: Maintainability of the Company PetitionsIn the case, two company petitions, C. P. No. 60/KOB/2019 and T. C. P. No. 91/KOB/2019, were filed by the petitioner against the company and its directors before the National Company Law Tribunal, Kochi Bench. The petitioner sought various reliefs under sections 59, 100, 102, 115, and 241 to 244 of the Companies Act, 2013. The respondents raised an objection to the maintainability of the petitions. The Tribunal heard both parties and on October 18, 2019, pronounced an order affirming that the company petitions were maintainable under sections 241 and 242 of the Companies Act, 2013.Issue 2: Settlement Through Mediation and Withdrawal of Company PetitionsFollowing subsequent developments, it was brought to the Tribunal's attention that mediation proceedings had been initiated by the High Court of Kerala to resolve the dispute between the parties. The parties reached a settlement through mediation, as evidenced by a mediation agreement. The agreement stated that all civil, criminal, and company cases filed against each other would be withdrawn within 15 days of executing the agreement. Consequently, the petitioner filed an application to withdraw the company petitions under the National Company Law Tribunal Rules. Both parties acknowledged the settlement and expressed their willingness to comply with the terms of the mediation agreement. Considering the mediation agreement and withdrawal application, the Tribunal concluded that no further issues remained to be adjudicated in the company petitions. Therefore, on the basis of the settlement agreement, the Tribunal directed both parties to comply with the terms of the mediation agreement, leading to the disposal of C. P. No. 60/KOB/2019 and T. C. P. No. 91/KOB/2019 as withdrawn, with no order as to costs.