2020 (10) TMI 123 - AT - Companies Law

Prayer to NCLT to decided the matter at an earliest - Appellant claims that there is an urgency that the matter should be taken up to inter-alia consider if the Respondent No. 1 2 who have procured the Impugned Order performed their obligations or not - HELD THAT - It appears to us that there is urgency in the matter and in order to protect the interest of the Company it would be appropriate that the Learned NCLT urgently deals with the M.A. 21/KB/2020. The Parties had fairly entered into a settlement and timely action by the Learned NCLT can help save the settlement. Appeal disposed off with a direction to the Learned NCLT Kolkata Bench (Kolkata) to urgently decide Misc. App. No. 21/KB/2020 in CP No. 49/2016 preferably within a month.

Summary

Issues:
1. Urgency in deciding an appeal against an interim order passed by NCLT, Kolkata.
2. Dispute regarding reciprocal obligations under an amicable Terms Of Settlement (T.O.S.) between the parties.
3. Request for urgent decision by NCLT on Misc. App. No. 21/KB/2020 in CP No. 49/2016.

Analysis:
Issue 1: The Appellant filed an appeal against an interim order passed by NCLT, Kolkata, affecting the functioning of the Company due to the restriction on alienating properties which are its 'Stock in Trade'. The Appellant highlighted the urgency for a decision as the NCLT at Kolkata was not having regular sittings, causing difficulty for the parties.

Issue 2: The Appellant claimed that the Respondent No. 1 & 2 failed to fulfill their reciprocal obligations under an amicable Terms Of Settlement (T.O.S.) entered into by the parties. The Respondents sought execution of the T.O.S. through M.A. 21/KB/2020 in CP No. 49/2016, leading to the Impugned Order. The Appellant emphasized the need for a prompt determination on whether the Respondents fulfilled their obligations.

Issue 3: The Appellant urged for urgent consideration by NCLT of M.A. 21/KB/2020 in CP No. 49/2016 to assess the performance of the Respondents under the settlement terms. The Respondent's counsel acknowledged the urgency and agreed to cooperate for an early decision by the NCLT, ensuring fairness in the process.

Conclusion:
The National Company Law Appellate Tribunal directed the NCLT, Kolkata Bench, to promptly decide Misc. App. No. 21/KB/2020 in CP No. 49/2016, preferably within a month. Both parties were instructed to cooperate with the NCLT, with a scheduled virtual appearance before the Adjudicating Authority. The Tribunal refrained from expressing any opinion on the merits of the case, focusing solely on expediting the resolution process in the interest of justice and fairness.