2020 (11) TMI 533 - Tri - Insolvency and Bankruptcy

Amicable Settlement - Applicant represents that he does not have any objection to the terms and conditions as reflected in the memo, which correlates with the exchange of the e-mail communications happened as transpired between the parties namely the Applicant and the 1st Respondent viz., the Scheme Proponent - HELD THAT - According to the terms and conditions contained in the joint memo filed by the 1st and 2nd Respondent, the period within which the Applicant is manning the dredger as covered in the joint memo, is only up to 30.09.2020 and in the circumstances, the mediation referred to the Chartered Accountant/Statutory Auditor of the Corporate Debtor in relation to the claim pertaining to the Applicant is to be suitably withdrawn - In relation to the balance claim which has been made by the Liquidator, both the parties represent, namely the 1st and 2nd Respondent and the Liquidator, Learned Counsel for the Liquidator represents that the same will go on for the mediation/Chartered Accountant. Application dismissed as withdrawn.

Summary

Issues:
1. Settlement agreement between parties
2. Payment of outstanding claim to Liquidator
3. Possession of dredger by Scheme Proponent
4. Extension of time due to Covid-19

The Tribunal considered an urgent application filed for the hearing of another application, both related to a settlement agreement between the parties involved. The parties informed the Tribunal about reaching an amicable settlement, supported by a joint memo filed by the Counsel for the respondents. The applicant's Counsel confirmed no objection to the terms in the memo, which aligned with previous email communications. A specific sum was identified as outstanding, with a balance to be paid by the Scheme Proponent to the Liquidator for the release of the dredger in possession of the Applicant. The Applicant acknowledged the limited duration of their possession of the dredger as per the terms in the joint memo. The mediation regarding the applicant's claim was to be withdrawn as per the agreement reached.

In terms of the outstanding claim with the Liquidator, both parties and the Liquidator agreed to continue the mediation process through a Chartered Accountant. Consequently, the Tribunal dismissed the initial application as withdrawn based on the representations made and the joint memo submitted by the respondents. Additionally, the Liquidator, despite seeking an extension due to Covid-19, confirmed the handover of the company's assets to the Corporate Debtor. However, further instructions were awaited from the Scheme Proponent, with a commitment to file a memo before the Tribunal by the end of the week, which was duly noted by the Tribunal for record purposes.