Sandeep Kukkar Vs. Siddarth Intercrafts Pvt. Ltd. - The mere fact that Resolution Professional has not filed the Application although Settlement Agreement required his dues to be paid by the Operational Creditor does no inhibit the Adjudicating Authority to exercise its jurisdiction under Rule 11 of NCLT Rules, 2016. We thus are of the view that ends of justice will be served in disposing of Appeal directing the Adjudicating Authority to take a final decision on I.A. No. 310/2021.

NCLAT (PB) New Delhi (06.02.2023) In Sandeep Kukkar Vs. Siddarth Intercrafts Pvt. Ltd.  [Company Appeal (AT) (Insolvency) No. 1017 of 2022] held that;

• The mere fact that Resolution Professional has not filed the Application although Settlement Agreement required his dues to be paid by the Operational Creditor does no inhibit the Adjudicating Authority to exercise its jurisdiction under Rule 11 of NCLT Rules, 2016. We thus are of the view that ends of justice will be served in disposing of Appeal directing the Adjudicating Authority to take a final decision on I.A. No. 310/2021.

Excerpts of the order;

06.02.2023: Heard Learned Counsel for the Appellant. Notice was issued by Order dated 20.09.2022 to the Respondent but no one has appeared for Respondent although notice has been served which fact is recorded earlier in Order dated 23rd January, 2023. We thus proceed to hear the Appellant.

# 2. Learned Counsel for the Appellant submits that the Appeal has been filed against the Order dated 22nd July, 2022 in I.A. No. 356/JPR/2021 which was filed by the Operational Creditor on which a Direction has been issued by the Adjudicating Authority to the Resolution Professional to convene a Meeting of Committee of Creditors and appropriate order may be passed in the Meeting of CoC regarding the claim of the Applicant being Synergy Marketing.

# 3. Learned Counsel for the Appellant submits that the Section 9 Application was filed by the Operational Creditor namely A1 Clothings Pvt. Ltd. on which Application CIRP was initiated vide Order dated 17.05.2019. It is submitted that an I.A. No. 310 of 2021 was filed by the Appellant-Suspended Director of the Corporate Debtor bringing the settlement with Operational Creditor under which Settlement the dues of the Operational Creditors were all paid off and as per terms and conditions of the Settlement, the Operational Creditor was to make payment of the fees and expenses of the Resolution Professional. It is submitted that the Resolution Professional has not filed the Application under Section 12A of the Code hence the Suspended Director has to file an Application I.A. No. 310 of 2021 on which Application an order was passed by the Adjudicating Authority on 27th January, 2022 asking the Operational Creditor to file a Reply and further by a subsequent order dated 26.10.2021, the RP who was present was asked to file the Report and file the Reply. It is submitted that the said Application I.A. No. 310 of 2021 is still pending and on an Application being I.A. No. 356/JPR/2021 by another Operational Creditor, the Impugned Order has been passed. It is submitted that Appellant has already settled with the Applicant of I.A. No. 356/JPR/2021 and his dues are paid and he has no grievance whatsoever.

# 4. In the facts of the present case, we are of the view that I.A. No. 310 of 2021 filed by the Suspended Director bringing on record Settlement Agreement and praying for closure of the proceeding, the Adjudicating Authority ought to have considered the said Application. The mere fact that Resolution Professional has not filed the Application although Settlement Agreement required his dues to be paid by the Operational Creditor does no inhibit the Adjudicating Authority to exercise its jurisdiction under Rule 11 of NCLT Rules, 2016. We thus are of the view that ends of justice will be served in disposing of Appeal directing the Adjudicating Authority to take a final decision on I.A. No. 310/2021, no further step needs to be taken in pursuance of the Order dated 22nd July, 2022 whose implementation was already stayed by this Tribunal on 20th September, 2022.

In view of the foregoing discussions, this Appeal is allowed, order dated 22nd July, 2022 is set aside, the Appeal is disposed of directing the Adjudicating Authority to dispose of the Application I.A. No. 310 of 2021 expeditiously in accordance with law.

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