Digambar Nandi, Suspended Director Of Virajaa Steel And Power Pvt. Ltd. vs Shresth Builders Pvt. Ltd. & Anr.

(Hybrid Mode) 30.03.2026: I.A. No. 1878 of 2026-

Heard Ld. Counsel for the applicant i.e. Shresth Builders Pvt. Ltd. as well as Ld. Counsel appearing for the original appellant- Digambar Nandi, Suspended Director of the CD and perused the record.

The instant application has been moved by the applicant (financial creditor of the CD) with a prayer that Registry of this appellate tribunal be directed to release the deposited amount of Rs. 1,18,88,924/- by way of NEFT/RTGS, in favour of the applicant as Financial Creditor as per the bank details provided in the application.

Ld. Counsel for the applicant submits that aggrieved by initiation of the Insolvency process under Section 7 of the Code an appeal was filed by the Suspended Director of the CD bearing CA (AT) (Ins) No. 1483 of 2025 and during the pendency of the same the parties arrived at a settlement and in pursuance of the order dated 30.10.2025 passed in the aforesaid appeal the parties were relegated to Ld. Adjudicating Authority for the purpose of filing an appropriate application under Section 12A of the Code for the purpose of bringing on record any settlement which has arrived between the parties with a specific stipulation that the application which would be moved by the parties under Section 12A of the Code would be disposed of by the Ld. Adjudicating Authority in accordance with law and further the amount of Rs. 1,18,88,924/- which has been deposited with the Registrar of this Appellate Tribunal may be dealt with as per the orders which may be passed by Ld. Adjudicating Authority with regard to the application moved under Section 12A of the Code.

Ld. Counsel for the applicant has drawn our attention towards the order of Ld. Adjudicating Authority passed in IA (IB) No. 354/CB/2025 of date 13.01.2026 wherein, while the petition filed by the appellant was dismissed as withdrawn, consequential direction was passed that the amount lying/deposited with the Registry of this Appellate Tribunal shall be received by the financial creditor (original appellant of the appeal) as per the settlement agreement.

It is thus submitted that in pursuance of the order of this Appellate Tribunal dated 30.10.2025 passed in CA (AT) (Ins) No. 1483 of 2025 as well as in view of the order passed by the Ld. Adjudicating Authority of date 13.01.2026 the amount of Rs. 1,18,88,924/- lying/deposited with the Registry of this Appellate Tribunal be released in favour of the appellant and lien of the FDR be also removed.

Ld. Counsel for the original appellant i.e. Digambar Nandi Suspended Director of the CD is not having any objection so far as the request of the applicant is concerned.

We have heard Ld. Counsel for the parties and perused the record.

We notice that an appeal being CA (AT) (Ins) No. 1483 of 2025 was filed by the Suspended Director of the CD and as the parties had arrived at a settlement, an application in this regard was filed before this appellate tribunal which was disposed of on 30.10.2025 whereby the parties were relegated to the Ld. Adjudicating Authority for the purpose of filing an appropriate application under Section 12A of the Code and Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 with a specific direction that any appropriate order, with regard to the amount deposited with this Appellate Tribunal i.e. Rs. 1,18,88,924/-, may be passed by the Ld. Adjudicating Authority. The relevant part of the order dated 30.10.2025 passed by this appellate tribunal is reproduced as under:

We also notice that in pursuance of the order of this appellate tribunal of date 30.10.2025, Ld. Adjudicating Authority has passed an order of date 13.01.2026 whereby, on the settlement filed by the parties before the Ld. Adjudicating Authority under Section 12A of the Code the petition filed by the applicant was dismissed as withdrawn and specific direction was given to the Registry of this appellate tribunal to release the aforesaid amount in favour of the financial creditor as per the settlement agreement.

The relevant portion of the judgment passed by the Ld. Adjudicating Authority is also reproduced as under:

We have asked the Registry of this Appellate Tribunal to submit a comprehensive report with regard to the contents of the application moved by the applicant and in pursuance of the same a report has now been submitted by the Registry in terms that the appellant through Ld. Counsel has submitted a Fixed Deposit Receipt with Lien marked in favour of Registrar, National Company Law Appellate Tribunal, New Delhi vide Diary No. 62291 dated 25.09.2025. The detailed description of the FDR has also been given in the report. For the purpose of convenience, the relevant part of the report so submitted by the Registry is also provided as under:

The above mentioned factual matrix would reveal that in pursuance of the order dated 30.10.2025 passed by this Appellate Tribunal, Ld. Adjudicating Authority has passed order dated 13.01.2026, in IA (IB) No. 354/CB/2025 moved under Section 12A of the Code whereby the petition filed by the applicant under Section 7 of the Code was dismissed as withdrawn and a specific order was passed with regard to the fixed deposit amount deposited with the Registry of this Appellate Tribunal in terms that it shall now be received by the financial creditor (applicant) as per settlement agreement.

The reports submitted by the Registry specifically mentions that in view of the order passed by this Appellate Tribunal dated 25.09.2025 FDR of Rs. 1,18,88,924/- has been submitted with the lien marked in favour of the Registrar of this Appellate Tribunal.

Thus, keeping in view all the facts and circumstances of the case, the application moved by the applicant is hereby allowed. The Registry of this appellate tribunal is directed to release the above mentioned FDR of Rs. 1,18,88,924/- along with the up to date accrued interest in favour of the applicant after removing the lien created in favour of the Registrar, NCLAT.