2020 (9) TMI 702 - AT - Insolvency and Bankruptcy

Settlement agreement closes appeal, emphasizes timely payments in insolvency

The Tribunal disposed of the appeal following a settlement agreement between the parties, confirming compliance with the Memorandum of Understanding ... Settlement agreement - withdrawal of CIRP - HELD THAT:- Indeed, the settlement arrived at between the Parties are not in dispute. Further, pursuant to the ‘Memorandum of Understanding’ dated 01.09.2020, it is brought to the notice of this Tribunal that the 1st Respondent/Parsvnath Developers Ltd. had received the Demand Draft bearing No. 004069 for ₹ 12/- Lakhs from the Appellant. Added further, the Resolution Professional, Mr. Naresh Kumar Munjal informs this Tribunal that he is yet to receive the remuneration for the month of August and September, 2020 and in respect of the ‘Miscellaneous Expenses’, he had raised his invoice to an extent of ₹ 53,000/- etc. - In view of the fact that, the ‘Memorandum of Understanding’ dated 01.09.2020, was reached between the Parties culminating in settlement, this Tribunal recording the said fact disposes of the Appeal, but without costs. This Tribunal deems it fit and proper in directing the Resolution Professional, Mr. Naresh Kumar Munjal to file an Application under Section 12A of the I&B Code 2016, for ‘Withdrawal of Application’ before the Adjudicating Authority, within three days from today, without any delay. Soon after filing of the withdrawal of Application in terms of Section 12A of the Code, the Adjudicating Authority shall do the needful in this regard, within a period of one week thereafter. Issues:1. Settlement agreement between the parties.2. Compliance with terms of the Memorandum of Understanding.3. Payment of dues and remuneration to Resolution Professional.4. Disposal of the appeal.5. Direction to file an Application under Section 12A of the I&B Code 2016.Settlement Agreement Between the Parties:The judgment pertains to a Memorandum of Understanding (MOU) dated 01.09.2020 between the Appellant and the 1st Respondent, Parsvnath Developers Ltd. The MOU outlined various terms, including the payment of a settlement amount, monthly fee, miscellaneous expenses, and provision of TDS certificates. It was agreed that the settlement would be in full and final settlement of all disputes related to outstanding dues. The parties also agreed to withdraw the Insolvency Application and the Appeal upon compliance with the MOU terms.Compliance with Terms of the Memorandum of Understanding:The Appellant paid the settlement amount to the 1st Respondent as per the MOU. However, the Resolution Professional had not received his remuneration for August and September 2020, along with miscellaneous expenses. The Tribunal acknowledged that the settlement terms were not in dispute and confirmed the receipt of the settlement amount by the 1st Respondent.Payment of Dues and Remuneration to Resolution Professional:The Resolution Professional, Mr. Naresh Kumar Munjal, had yet to receive his remuneration for August and September 2020, as well as the miscellaneous expenses. He informed the Tribunal about the pending payments, indicating that he had raised an invoice for the same. The Tribunal directed Mr. Munjal to file an Application under Section 12A of the I&B Code 2016 for the withdrawal of the Application before the Adjudicating Authority promptly.Disposal of the Appeal:Given the settlement reached between the parties and the compliance with the MOU terms, the Tribunal disposed of the Appeal without imposing any costs. The Tribunal recognized the settlement agreement and concluded the matter accordingly.Direction to File an Application under Section 12A of the I&B Code 2016:The Tribunal instructed the Resolution Professional to file an Application under Section 12A of the I&B Code 2016 for the withdrawal of the Application before the Adjudicating Authority within three days. The Adjudicating Authority was directed to take necessary actions promptly upon the filing of the withdrawal Application.This judgment highlights the importance of honoring settlement agreements, ensuring compliance with terms, and prompt payment of dues to all concerned parties involved in insolvency proceedings.