National Company Law Appellate Tribunal Amit Wadhwani vs M/S Global Advertisers on 5 July, 2022 1 NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH NEW DELHI COMPANY APPEAL (AT)(INSOLVENCY) NO.616/2021 (Arising out of Judgement dated 02.08.2021 passed by the Adjudicating Authority, National Company Law Tribunal, Mumbai Bench IV, Mumbai in CP (IB)No.1393/MBIV/2020). In the matter of: Amit Wadhwani, Flat No.B 6, Gurukrupa Tarrace, CHS, Opp New Police Station, Chembur, Naka, Mumbai 400092 Appellant Vs 1. M/s Global Advertisers, 6th Floor, Shree Ram Trade Centre SVP Road, Borivali West Mumbai 400092 2. Mr UVG Nayak, Interim Resolution Professional 303/305, Rajmata CHS Ltd, Near RTO, Four Bungalows, Andheri (W), Mumbai 400053 For Appellant: Mr. Ramji Srinivasan, Sr. Advocate, Mr Kush Chaturvedi, Mr Dharam Jumani, Mr. Suraj Iyer, Ms Priyashree Sharma, Ms Gauri Joshi, Advocates. For Respondent: Mr. Mohit Chaudhary, Mr. Girishi B Kedia, Advocates for R1. JUDGEMENT VIRTUAL MODE JUSTICE RAKESH KUMAR, MEMBER (JUDICIAL) The present Appeal has been preferred by one of the suspended Board of Directors and shareholder of M/s Sai Estate Consultants Chembur Pvt Ltd Company Appeal (AT)(Ins) No.616/2021 2 ('Corporate Debtor'). The Appeal has been preferred against an order dated 2nd August, 2021 passed by the Adjudicating Authority, National Company Law Tribunal, Mumbai Bench IV, Mumbai (hereinafter referred to as 'Adjudicating Authority') in CP(IB)No.1393/MBIV/2020. By the said order the Adjudicating Authority acting upon petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as the 'IBC') has initiated Corporate Insolvency Resolution Process (CIRP) and appointed Interim Resolution Professional namely Mr. UVG Nayak by M/s Global Advertisers, a Sole Proprietary FirmOperational Creditor. 2. The Operational Creditor on the basis of outstanding dues had issued Notice under Section 8 of the IBC against Respondent No.1. As allegedly since no tangible dispute was raised by the Respondent No.1 an application under Section 9 of IBC was filed and thereafter impugned order was passed. 3. One of the Member of the suspended Board of Directors and a shareholder of Sai Estate Consultants Chembur Pvt Ltd, Corporate Debtor, has filed the present Appeal. Initially in the Appeal the IRP was not arrayed as Respondent. On 18.08.2021, a Coordinate Bench of this Tribunal directed for impleading IRP as Respondent, besides issuing necessary directions. The order dated 18.08.2021 is quoted hereinbelow: "Heard Learned Sr. Counsel for the Appellant 2. Learned Sr. Counsel vehemently argued and submitted that there is a preexisting dispute. The Learned Sr. Counsel referred to Letter at Page 178 of the Appeal Paper Book which was sent in the context of Letter dated 11th March, 2020 to point out that there is a preexisting dispute. Company Appeal (AT)(Ins) No.616/2021 3 Ld. Sr. Counsel is trying to show that both the parties did agree that reconciliation was required. Ld. Sr. Counsel submitted that the CIRP needs to be stayed and Interim Relief to that effect may be ordered. 3. We have gone through the Record and Impugned Order. The Impugned Order in Paragraphs 48 to 52 has discussed the respective cases of the parties. 4. Whether or not, a Letter communicating requirement of reconciliation can be said to be raising of a dispute is matter to be decided. We do not find any reason to grant any Interim Relief as procedure under IBC are time bound and delay would defeat the objective of IBC. 5. The Corporate Debtor through IRP has not been made Respondent. Appellant to array the Corporate Debtor through IRP as Respondent No. 2. Notice be served on Respondent No. 2. Learned Counsel for Respondent No. 1 is present. 6. The Appellant/Promoters/Directors of the 'Corporate Debtor' are directed to handover the assets and records of the 'Corporate Debtor' to the 'Interim Resolution Professional' immediately (if not yet handed over). The 'Interim Resolution Professional'/ RP will make effort that the Company remains a going concern and will take assistance of the (suspended) Board of Directors and the officers/Director/Employees. The persons who are working will, at present continue to perform their duties, in