National Company Law Appellate Tribunal
Rushabh Precision Bearings Limited vs Shimnit India Private Limited on 16 September, 2022
Author: Ashok Bhushan
Bench: Ashok Bhushan
NATIONAL COMPANY LAW APPELLATE TRIBUNAL
PRINCIPAL BENCH, NEW DELHI
Contempt Case (AT) No. 22 of 2022
in
Company Appeal (AT) (Insolvency) No. 536 of 2022
IN THE MATTER OF:
Shimnit India Pvt. Ltd. & Anr. ...Applicants
Versus
Rajesh Vora ...Respondent
Present:
For Applicants: Mr. Aman Preet Singh Rahi and Mr. Puneet Thakur,
Advocates.
For Respondent: Mr. Abhijeet Sinha, Nirnimesh Dube, Ankur S.
Kulkarni, Susheel Joseph Cyriac, Advocates
ORDER
16.09.2022: This Contempt Application has been filed for drawing Contempt Proceeding against the Respondent for violation of the undertaking given to the Court. This Court while hearing Company Appeal (AT) Ins. No. 536 of 2022 passed following Order on 2nd June, 2022:
"02.06.2022: Shri Abhijeet Sinha, Learned Counsel for the Appellant submits that the entire amount as claimed in Section 7 Application is Rs.22,23,45,748/- which includes interest as on 31/12/2021.
2. He submits that the aforesaid amount along with upto date interest shall be paid to the Appellant provided that the Appellant is given time till 01st week of July.-2-
3. He submits that the Appellant undertake to pay the said payment. He has also received the Letter of Comfort for payment of the said amount.
4. In view of the aforesaid, we adjourn this Appeal and direct the Appeal to be listed on 07th July, 2022.
5. In the meantime, in pursuance of the Impugned Order, CoC shall not be constituted. However, IRP shall continue the 'Corporate Debtor' as a 'Going Concern'.
6. Learned Counsel for the Appellant submits that he shall be permitted to file undertaking by tomorrow. Prayer allowed. He may file the same by tomorrow.
List this Appeal on 07th July, 2022."
2. In pursuance of the said Order, an Undertaking was also submitted by the Appellant to the Court, subsequently by the Judgement of this Tribunal dated 24th August, 2022, the Appeal filed by the Appellant was dismissed affirming the Order of the Adjudicating Authority admitting Section 7 Application. This Tribunal while dismissing the Appeal has also noticed the undertaking given in pursuance of the Order dated 2nd June, 2022 in paragraph 15 and 16 of the Judgment.
3. Learned Counsel for the Applicant submits that since the undertaking was false and not honoured hence contempt be initiated against the Respondent.
4. This Court passed Order on 2nd June, 2022 as noted above where the Appellant stated that they are ready to pay entire amount as claimed in Section Contempt Case 22/2022 in Company Appeal (AT) (Insolvency) No. 536/2022 -3- 7 Application and time be allowed. It is clear that in pursuance of the Order dated 2nd June, 2022 amount was not deposited by the Appellant and the Appeal was subsequently heard on 01st August, 2022 and vide Judgment dated 24th August, 2022 dismissed.
5. In the facts of the present case, we are of the view that present is not a case for initiating any contempt proceeding where the Appellant was unable to deposit the amount. They were not entitled to benefit of the Order passed by the Court and subsequently the Appeal resulted in dismissal by this Tribunal. We are not inclined to initiate any contempt proceeding in the facts of the present case. The Contempt Application is dismissed.
[Justice Ashok Bhushan] Chairperson [Mr. Barun Mitra] Member (Technical) Basant/nn Contempt Case 22/2022 in Company Appeal (AT) (Insolvency) No. 536/2022