TaxTMI 
TaxTMI 
2019 (8) TMI 1594
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....nd final settlement of the debt and return the balance amount of Rs. 2,35,40,000/- to him and further direct the Applicant to register the secured asset in favour of Respondent for the sum of Rs. 4.50 Crores to facilitate the settlement. 2. A brief reference to the factual backdrop that led to the Application would be in order to appreciate the prayer made in the present Application. They are as under. The Respondent herein is an Operational Creditor of the Applicant Company. It made an Application under Section 9 of the Insolvency and Bankruptcy Code (the Code for short) in CP (IB) No. 173/9/HDB/2018 (renumbered CP (IB) No. 22/9/AMR/2019 on transfer to this Tribunal), alleging unpaid debt to a tune of Rs. 2,15,59,699/- for initiating Cor....
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....s rights to invoke the security created under the MoD. Instead it invoked the provisions of the Section 9 of the IBC only with a view to put the applicant into hardship. Be that as it may, the Applicant with a view to settle the matter communicated a settlement proposal by e-mail dt. 15.12.2018 to the OC. It did not elicit any response. Hence the Application. It is prayed that the Respondent may be directed to invoke the security created under the MoD and settle the claimed debt and return balance amount to Mr. M. V. Rattaiah and to direct Mr. Rattaiah to register the secured assets in favour of the Respondent (OC) for Rs. 4.5 crores. 3. The Respondent (OC) objecting to the application, in its counter, challenged the maintainability of th....
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....which as a Financial Creditor would supersede the claim of the Respondent. Besides the Resolution Professional named by the Respondent is infamous for driving 'going concerns' into liquidation. The Respondent having a security in his favour could invoke the same. The Respondent had mounted a similar offensive based on misrepresentations and concocted facts in the matter of Spads Textiles Limited, an associate company of the Applicant Company. It was admitted by the Tribunal under Section 9 of the Code. Mr. M. V. Rattaiah, a Member of the suspended Board of Directors has challenged the same before the Hon'ble Supreme Court of India. 5. The Counsel for the parties have been heard at length. Admittedly Mr. M. V. Rattaiah is the M....