Kar Vivad Samadhan Scheme settlement extended to co-noticees, causing pending proceedings to abate as infructuous.

Settlement under the Kar Vivad Samadhan Scheme obtained by the principal noticee was treated as extending to the co-noticees where their connected appeals were still pending. The Tribunal applied the principle that a matter remains pending adjudication while an appeal is on foot, so the benefit of settlement was not confined to the principal noticee alone. On that basis, the proceedings against the directors abated and their appeals were dismissed as infructuous.

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Issues: Whether settlement under the Kar Vivad Samadhan Scheme by the principal noticee extended to the co-noticees so that the proceedings against them also abated and their appeals became infructuous.

Analysis: The dispute turned on the effect of the principal noticee having obtained satisfaction under the scheme while the connected appeals of the directors remained pending. The Tribunal relied on the view that, where an appeal is pending, the matter is still pending adjudication for the purpose of extending the benefit of settlement. On that basis, the benefit available to the principal noticee was treated as extending to the co-noticees as well.

Conclusion: The benefit of settlement extended to the two appellants. The proceedings against them abated and their appeals were dismissed as withdrawn as infructuous.

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