Case Note & Summary
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, passed an interim order in an appeal filed by Naresh Kumar Agarwal, the suspended director of Bharat Hitech (Cement) Pvt Ltd., against G R Infraprojects Ltd. and another respondent. The appeal arose from the admission of a Section 9 application under the Insolvency and Bankruptcy Code, 2016, by the Adjudicating Authority. The appellant's counsel submitted that the appellant was a healthy company carrying out various projects and supplying cement, and that it had received a request for supply of 27,000 cement bags in September, which were ready, but due to non-issuance of waybills by the Railways, the supply could not be made. The appellant expressed readiness to deposit the amount claimed in the Section 9 application. The Tribunal directed the appellant to deposit the total outstanding amount of Rs.2,95,68,940/- within two weeks before the Registrar of NCLAT in a Fixed Deposit receipt to earn interest. The Tribunal issued notice to the respondents, granting three weeks for reply and two weeks for rejoinder. The Tribunal also observed that parties may still make efforts to settle the matter and stayed the impugned order in the meantime. The appeal was listed for further hearing on 03rd July, 2024.
Headnote
A) Insolvency Law - Interim Stay - Section 9, Insolvency and Bankruptcy Code, 2016 - The appellant, a suspended director of a corporate debtor, challenged the admission of a Section 9 application. The Appellate Tribunal directed the appellant to deposit the total outstanding amount of Rs.2,95,68,940/- within two weeks before the Registrar in a Fixed Deposit receipt to earn interest, and stayed the impugned order in the meantime. The Tribunal also encouraged parties to make efforts to settle the matter. (Paras 1-7)
Issue of Consideration
Whether the appellant should be granted interim stay of the impugned order subject to deposit of the outstanding amount claimed under Section 9 of the Insolvency and Bankruptcy Code, 2016.
Final Decision
The Tribunal directed the appellant to deposit the total outstanding amount of Rs.2,95,68,940/- within two weeks before the Registrar of NCLAT in a Fixed Deposit receipt to earn interest. The impugned order was stayed in the meantime. The appeal was listed for 03rd July, 2024, and parties were encouraged to settle.
Law Points
- Interim stay
- deposit of amount
- settlement efforts
