TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 150
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....d counsel for the Appellant submitted that the Appellant on behalf of the Promoters is ready to settle the claim of the Financial Creditor. If necessary, they are ready to move before a 'Mediator', who may be appointed by this Appellate Tribunal. It was also submitted that Committee of Creditors has not been constituted till date. 3. For the said reason, the Interim Resolution Professional was while directed to ensure that the Corporate Debtor remains a going concern, also directed not to constitute Committee of Creditors, if not constituted, to enable the parties to reach amicable settlement. 4. Mr. Ketan Madan, learned counsel appearing on behalf of the Respondent - 'Intec Capital Ltd.' agreed for mediation and the matter was referred to Hon'ble Mr. Justice (Retd.) A. K. Sikri, Former Judge of the Hon'ble Supreme Court for mediation. 5. Hon'ble Mr. Justice (Retd.) A. K. Sikri, Former Judge of the Hon'ble Supreme Court forwarded the Mediation Report dated 2nd December, 2019 enclosing the Settlement Terms, as extracted below:- BEFORE JUSTICE A.K. SIKRI, FORMER JUDGE SUPREME COURT OF INDIA MEDIATOR MEDIATOR Company Appeal (AT) (Insolvency) No. 968 of 2019 At th....
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....Debtor committed default in making the payments of the instalments thereafter as the cheques given by the Corporate Debtor were bounced and payment against those bounced cheques was not made and the account was seized by the bank due to account becoming NPA; 6. AND WHEREAS, in order to regularise the aforesaid account, the Financial Creditor agreed advance another sum of Rs.41,32,383 (hereinafter referred to as the second loan) which carried interest @ 13% on 31.05.2016 and this loan was to be repaid in 36 instalments of Rs.1.57 lakhs each; 7. AND WHEREAS the Corporate Debtor paid 34 instalments of second loan, but neglected to pay the amount of remaining 22 instalments in respect of the first loan; 8. AND WHEREAS after payment of 34 instalments of the second loan, 2 instalments in respect of second loan were also not paid. In this manner, 22 instalments of the first loan and 2 instalments of the second loan remained outstanding; 9. AND WHEREAS, Loan Agreement dated 28.03.2013 contains clause on payment of penal interest @ 36% in case of default. On account becoming irregular, the Financial Creditor adjusted Inter Corporate Deposit (ICD) of Rs.95.40 lakhs, without paying in....
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....etween the parties, and it was agreed that the Corporate Debtor shall pay a sum of Rs.1.20 crore in respect of first loan given by the Agreement dated 28.03.2013 in full and final settlement of the said entire loan amount, in all respects. Further, the Corporate Debtor shall pay a sum of Rs. 5.00 lakhs in respect of second loan in full and final settlement. c. The amount of Rs.1.20 crore shall be paid in six instalments of Rs.20 lakhs starting from March 2020 as under: First instalment on or before 20.03.2020 Second instalment on or before 20.04.2020 Third instalment on or before 20.05.2020 Fourth instalment on or before 20.06.2020 Fifth instalment on or before 20.07.2020 Sixth instalment on or before 20.08.2020 d. The Corporate Debtor shall not pay any interest on the aforesaid amount of Rs.1.20 crore till December 2019. However, simple interest @ 12% on reducing balance shall be calculated and paid w.e.f. 01.01.2020. The interest so accrued shall be paid on 15th of next month whereby the interest for 20 days of August 2020 will be paid at the time of last instalment itself. e. The amount of Rs.5.00 lakhs to be paid in lump sum towards second lo....
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....Appeal before the NCLAT was initially filed by the Corporate Debtor Company, thereafter, Mr. Parvinder Singh, one of the employee, got himself impleaded in the Appeal and is signing the Settlement Agreement as well. i. Insofar as Mediation proceedings are concerned, Mr. Hardeep Singh attended the proceedings, representing Mr. Jagtar Singh and Mr. Sukhwant Singh, the erstwhile Directors, who have given Letter of Authority in his favour. In order to bind the company, the Hon'ble NCLAT may pass appropriate Orders. j. Both Mr. Jagtar Singh and Mr. Sukhwant Singh are ready to give undertaking and assurance to the NCLAT in the form of Affidavits to the effect that they would honour the terms of this settlement and ensure that all cheques (PDCs) are encashed on presentation. They have also agreed to give undertaking to the Hon'ble NCLAT in this behalf with the stipulation that in case of breach of the Agreement, they would personally liable for the consequences, including contempt of Court. They have also agreed to give their personal guarantee for fulfilment of the obligations under the Agreement. k. It is agreed between the parties that on the recording of this settlement ....
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....llant) and the Promoter will be personally liable. 8. The aforesaid post-dated cheques are being handed over to Mr. Ketan Madan, learned counsel for 'Intec Capital Ltd.' for onward transmission to the Respondent - Financial Creditor. 9. Interim Resolution Professional has worked for about three months. He was also present before the Hon'ble Mediator and his fee and cost has been determined in the Settlement Terms. Therefore, he will be entitled for the same. Mr. Piyush Moona, Interim Resolution Professional, who is present before this Appellate Tribunal will receive the amount in terms of the Settlement Terms. 10. In the fact and circumstances, in the light of decision of Hon'ble Supreme Court in 'Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.', Writ Petition (Civil) No. 99/2018, reported in 2019 SCC OnLine SC 73 and in exercise of power conferred under Rule 11 of NCLAT Rules, 2016, we set aside impugned order dated 3rd September, 2019 passed by the Adjudicating Authority initiating Corporate Insolvency Resolution Process against 'M/s Jagtar Singh and Sons Hydraulics Private Limited' conditionally, subject to the compliance of the Terms of Settlement by the end of Augu....