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Judgment
ORDER
Heard Learned Counsel for the Appellant.
This Appeal has been filed against the order dated 15.12.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Court-I, admitting Section 7 Application filed by the Respondent. The Corporate Debtor had taken financial benefit to the totaling of Rs. 1,62,13,611/- with regard to which proceedings under Section 7 was initiated by the Financial Creditor. There has been a settlement between the parties regarding earlier Company Petition which was withdrawn on 14.03.2019. The Settlement could not be honored by the Corporate Debtor, hence, Application CP (IB)-4172/MB/2019 has been filed. The Adjudicating Authority noticing the fact that counsel appearing for the Corporate Debtor has accepted the debt as well as default to the tune of Rs.1.35 Cr. has admitted the Application.
Learned Counsel for the Appellant challenging the order submits that the Adjudicating Authority committed error in observing that no reply was filed by the Corporate Debtor to Section 7 Application whereas reply was filed on 20.01.2021 by e-mail. He further submits that he does not admit the amount of default as claimed by the Financial Creditor.
We have heard Learned Counsel for the Appellant and we have also perused the reply which is claim to have been filed on 20.01.2021 which has been brought on record at Page 28 of the paper book.
In para 7 of the said Reply, following has been stated by the Corporate Debtor:-
“7.I say that in furtherance of the said Settlement Agreement the Corporate Debtor paid an amount of Rs.60,00,000/- (Rupees Sixty Lakhs Only) to the Financial Creditor. However, the Corporate Debtor did not anticipate further financial trouble coupled with the severe downfall in the real estate (which was already going through tough times) and as such it had become extremely difficult for the Corporate Debtor to adhere to the said Settlement Agreement. I say that in spite of the Corporate Debtor having genuine and bonafide intention to repay the monies as agreed by it under the said Settlement Agreement on account of such unprecedented financial trouble and downfall in the real estate market led to such circumstances that the Corporate Debtor could not make the balance payment maximum to the extent of Rs. 1.35 Crores to the Financial Creditor in terms of what was agreed under the said Settlement Agreement.”
The figure of Rs.1.35 Crore which was mentioned in the Reply was reflected in the oral submission made by the Counsel for the Corporate Debtor which has been noted by the Adjudicating Authority. There being financial debt due which was an admitted fact, we see no error in the impugned judgment of the Adjudicating Authority by which Application has been admitted. Counsel for the Corporate Debtor submits that he does not admit the amount of default. An amount of Rs. 1.35 Crore having been admitted, the Application was rightly admitted. Counsel for the Appellant further submitted that he is ready to enter into settlement with the Respondent to pay all the outstanding dues. It is open for the Corporate Debtor to enter into settlement and on the basis of settlement, if any, may file an Application under Section 12A before the Competent Authority i.e. Adjudicating Authority for passing appropriate order. It is made clear that the observations made in this order are without prejudice to the rights and contentions of the parties.
The Appeal is dismissed.