Case Law Details
Malavika Hegde, Suspended Director of Coffee Day Global Limited Vs IndusInd Bank Ltd. & Anr. (NCLAT Chennai)
Introduction: In a recent development, the National Company Law Appellate Tribunal (NCLAT) Chennai passed a significant order in the case of Malavika Hegde, the suspended Director of Coffee Day Global Limited, versus IndusInd Bank Ltd. and another party. This order revolves around a pivotal ‘Settlement’ that led to the termination of the Corporate Insolvency Resolution Process (CIRP). Let’s delve into the details of this case.
Detailed Analysis: The case, represented by Ld. Sr. Counsel Mr. P.H. Arvindh Pandian on behalf of the Appellant, witnessed a crucial turn when a ‘Joint Memo’ dated 07.09.2023 was filed before the Office of the Registry. This memo revealed that the 1st Respondent, IndusInd Bank, as the ‘Assignor,’ had assigned the ‘Debt’ to ‘ASREC (India Ltd.). This assignment had a profound impact on the ongoing CIRP proceedings between the Appellant and the 1st Respondent.
Both the Appellant’s counsel and the 1st Respondent/Bank jointly requested that the ‘Memo,’ which substantiates the ‘Settlement’ between the parties, be officially recorded. Additionally, they appealed for the termination of the CIRP against the ‘Corporate Debtor,’ ultimately aiming to set aside the Impugned Order dated 20.07.2023 and dismiss the proceedings in CP(IB)No. 132/BB/2022, which were on the file of the Adjudicating Authority/Tribunal.
Crucially, the fact that a ‘settlement’ had been reached between the ‘Appellant’ and the ‘1st Respondent/Bank’ was undisputed. Consequently, the NCLAT Chennai took the ‘memo’ dated 07.09.2023 on record and, based on the settlement, allowed the instant Appeal. This action resulted in the setting aside of the impugned order dated 20.07.2023, passed by the Adjudicating Authority/Tribunal, and the dismissal of the main Company Petition. No costs were imposed, and all connected IA No. 757/2023 (for exemption) and IA No. 758/2023 (for stay) were closed.
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