NCLAT Delhi: Stayed Insolvency Process Against BPTP LTD., As Parties Enter Settlement

The National Company Law Appellate Tribunal (“NCLAT”) in the case Sudhanshu Tripathi v M/s RBCL Projects Pvt. Ltd., the Principal Bench comprising of the Chairperson, Justice Ashok Bhushan, the Judicial Member, Dr. Alok Srivastava and the Technical Member, Shri Barun Mitra, while adjudicating an appeal observed and has stayed the initiation of Corporate Insolvency Resolution Process (“CIRP”) against BPTP Ltd. by the Adjudicating Authority, as Parties in the case have entered settlement.
Facts of the Case:
The Corporate Debtor, M/s BPTP Ltd is a company engaged in real estate sector in Northern India with several successful residential and commercial projects at Gurgaon, Faridabad and NOIDA. Thus, work order has been given by the Corporate Debtor to the Operational Creditor/Respondent, M/s RBCL Projects Pvt. Ltd for construction of Group Housing Projects situated at Faridabad. However, the Corporate Debtor failed to pay the outstanding invoices of the Operational Creditor which are arising out of final bills.
A demand notice dated 02.04.2019 has been issued by the Operational Creditor to the Corporate Debtor under Section 8 of Insolvency and Bankruptcy Code, 2016 (“IBC”), to which no reply has been received. Consequently, on 09.02.2021, the operational creditor had also invoked the arbitration.
A petition under Section 9 of IBC has been filled by the Operational Creditor, wherein seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor. It has been observed by the Adjudicating Authority that the Operational Creditor has established default on the part of Corporate Debtor in payment of operational debt. However, on 14.11.2022 the Section 9 Petition was admitted and CIRP was initiated against the Corporate Debtor. Therefore, Mr. Rakesh Kumar Gupta was being appointed as the Interim Resolution Professional (IRP).
An appeal was filled by the Corporate Debtor through Appellant, Mr. Sudhanshu Tripathi before the NCLAT against the Order dated 14.11.2022, wherein contending that the Parties have entered settlement on 15.11.2022.
NCLAT Decision:
It has been observed by the NCLAT bench that the Parties have entered settlement and the Operational Creditor also made a statement that it has already received the amount under the Settlement. Thus, an order dated 14.11.2022 has been stayed by the bench and accordingly the CIRP has also been stayed. The court listed the matter for next hearing on 23.11.2022.