2019 (8) TMI 1549 - AT - Companies Law

Entitlement to Interest - operational creditor - Ld. Counsel for the Appellant handed, over a cheque bearing No. 712439 dated 10th August. 2017 drawn on Axis Bank for ₹ 1,55,200/- to Ms. Purti Marwaha Gupta, Ld. Counsel appearing on -behalf of the Appellant for onward transmission to the Appellant - HELD THAT - In view of the stand taken by the Respondent and the satisfaction on shown on behalf of the Appellant, no further order be passed. However, if the cheque is not encased or get bounced, in that case it will be open to the Appellant to bring the fact to the notice of this Appellate Tribunal for passing a final appropriate order. Appeal disposed off.

Summary

Issues:
1. Transfer of case from High Court to Adjudicating Authority under I&B Code
2. Claim of interest by operational creditor
3. Settlement of dispute between parties

Transfer of case from High Court to Adjudicating Authority under I&B Code:
The judgment pertains to a petition filed under Section 433 of the Companies Act, 1956, which was transferred from the High Court to the Adjudicating Authority (National Company Law Tribunal) as an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority, in its order, noted that the principal amount had been paid by the respondent-corporate debtor before the admission of the case. As there was no provision to pay interest, and the documents provided by the appellant for claiming interest were deemed inapplicable, the claim for interest was rejected, and the matter was closed.

Claim of interest by operational creditor:
During subsequent proceedings, the parties were informed that they could settle the dispute. The counsel for the corporate debtor acknowledged that the operational creditor was not entitled to interest under the law but offered an approximate sum of Rs. 1.5 lakhs due to a delay in payment. Subsequently, the appellant's counsel handed over a cheque to the respondent's counsel for onward transmission to the appellant, indicating that no further claims would be made regarding the settlement. The matter was disposed of based on the satisfaction shown by both parties, with the provision for the appellant to approach the Appellate Tribunal if the cheque was not encashed or bounced.

Settlement of dispute between parties:
The settlement of the dispute was facilitated by the payment of an approximate sum by the corporate debtor to the operational creditor, despite the latter not being entitled to interest as per the law. The acceptance of the cheque and the agreement not to make further claims signified the resolution of the matter between the parties. The judgment highlighted the importance of settlement and satisfaction in resolving disputes, ultimately leading to the disposal of the appeal without any costs imposed.