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TMI Blog2020 (10) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... Singh, Liquidator of RRC International Freight Services Limited (in liquidation) (also referred to as Corporate Debtor in this order), seeking leave of this Adjudicating Authority for continuation of Commercial Suits Nos.310/2018 and 842/2017 for and on behalf of the Corporate Debtor before the Hon'ble Bombay High Court. 2. The factual matrix 2.1. The brief facts leading up to the present application are as follows: - (a) EVRAZ East Metals AG (for short East Metals AG) had contracted to supply 10,000 MT of Metro Rails to Maharashtra Metro Rail Corporation Limited (for short MAHA METRO) and undertaken to deliver the same from Russia to the final destination at Nagpur Metro Rail Corporation site. (b) East Metals AG had appointed LSI Lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settlement terms, but noted that the same were not taken on record as yet. 3. Commencement of CIRP and liquidation proceedings 3.1. Meanwhile, on 07.03.2018, an application under section 7 of the IBC bearing CP (IB) No.380/2018 was filed by Indiabulls Housing Finance Limited against the Corporate Debtor for initiation of Corporate Insolvency Resolution Process (CIRP). This Adjudicating Authority, vide order dated 26.12.2018, admitted the petition and ordered initiation of CIRP against the Corporate Debtor. In view of the commencement of CIRP, the settlement terms arrived at on 12.11.2018, and of which notice was taken by the Hon'ble Bombay High Court vide order dated 18.12.2018, could not be enforced. 3.2. Mr Ashish Singh, the Applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1. The enforcement of the settlement entered into between the litigating parties in the two commercial suits would require legal proceedings to be instituted, which would squarely fall within the meaning "other legal proceeding" mentioned in the proviso to sub-section (5) of section 33. 6.2. We have perused the interlocutory application filed by the Liquidator and the annexures thereto. Considering the value of the settlement arrived at, we are convinced that the terms of the settlement entered into in the two Commercial Suits bearing No.842/2017 and No.310/2018 before the Hon'ble Bombay High Court will inure to the benefit of the Corporate Debtor, thus increasing its liquidation value. 7. Directions 7.1. Therefore, this Adjudicating A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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