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Judgment
(Hybrid Mode)
Oral Judgment: Justice Sharad Kumar Sharma, Member (Judicial):
The Appellant in the instant Company Appeal has impugned the order of 19.03.2024, that was passed in IA (IBC) No. 343/2023, which was preferred in CP(IB) No. 33/2021, before the Ld. NCLT, Kochi Bench. The effect of the impugned order was that, the application that was filed by the Resolution Professional of Kerala Chambers of Commerce and Industries, under Section 60(5)(c) of I & B Code, 2016, praying (i) To reclassify the claims pertaining to the arbitration awards from other Creditors to 'Financial Creditors' and correspondingly revise the voting shares of the CoC members as tabulated therein.
To reclassify the claims pertaining to the operational creditors from 'other creditors' to 'operational creditors' and
To reconstitute the Committee of Creditors (CoC) as tabulated there, in the applications.
The said application that was preferred before the Ld. Tribunal had been allowed by the impugned order, which is the subject matter of challenge herein.
When the matter was first taken up before this Appellate Tribunal on 27.06.2024, after hearing the Ld. Counsels for the parties (including the Caveator), while calling upon the Respondents to file the Counter Affidavit, we have granted an interim order, directing that the effect and operation of the impugned order is to be kept in abeyance. During the pendency of this Company Appeal, the parties have entered into a settlement, as is reflected from IA No. 796/2026, that has been filed by the Appellant.
We have perused the joint compromise application filed along with the affidavit and minutes of the 47th CoC meeting of M/s. Kerala Chamber of Commerce and Industries dated 24.04.2026. Based upon the aforesaid backdrop, the Appellant has submitted that the present Company Appeal may be closed in terms of the joint compromise, which has been arrived at between the parties particularly, as per the terms and conditions as contained in Para 3 to 6 of the joint compromise application, with liberty left to the Appellant to revive back the proceedings, in case the settlement terms are not abided by the parties or if there is a default.
It is further submitted by the Appellant that in an another proceedings, the matter was carried in a writ petition before the Hon'ble Kerala High Court, which was decided by the single Judge and further in the Writ Appeal No. 2079/2025, which has been decided by the Division Bench of the Kerala High Court on 09.06.2026, in the light of the settlement as referred to in this memo.
The facts as narrated in the settlement agreement are not objected to by the Respondent Counsel, who is present. Hence, the Company Appeal would stand closed, in terms of the settlement and the decision, which has been taken in the 47th CoC meeting, with the liberty reserved to the parties to revive back the proceedings in the event of the terms and conditions of the compromise not being complied with.
Subject to the above, the Company Appeal (AT) (CH) (Ins) No. 179/2024 would stand closed in terms of the compromise, as prayed for.