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2019 (3) TMI 981 - AT - Insolvency and BankruptcyCorporate Insolvency Resolution Process - arbitration proceeding is pending and some order has been passed by the Hon’ble Supreme Court - HELD THAT:- The payment of dues of ₹ 550 Crores to ‘Ericsson India Private Limited’- (‘Operational Creditor’) by three Reliance Companies has not been linked with the assets of the ‘State Bank of India’/ ‘Joint Lenders Forum’ or any other Bank, who are third party to the settlement between the three Reliance Companies and the ‘Ericsson India Private Limited’. By interim order dated 30th May, 2018, this Appellate Tribunal noticed the terms of the agreement/ settlement between the parties. One of the terms of the settlement is with the ‘RCom Group’ and the ‘State Bank of India’/ ‘Joint Lenders Forum’. The other part of the settlement/ agreement is between three Reliance Companies and ‘Ericsson India Private Limited’- (‘Operational Creditor’). Once such settlement is reached, it is for the parties to comply with the terms of settlement without any interference by this Appellate Tribunal. This Appellate Tribunal is only to find out whether the parties have settled the matter in terms of the order dated 30th May, 2018 or have failed to settle. On failure, it is open to this Appellate Tribunal to vacate the interim order of stay dated 30th May, 2018 and in absence of any merit, the appeal can be dismissed. As per the interim order, the ‘Financial Creditors’/ ‘Joint Lenders Forum’ with whom the assets of the ‘Corporate Debtors’ have been mortgaged have been allowed to sell the assets of the ‘Corporate Debtors’ and to deposit the total amount in the ‘Joint Lenders Forum’ subject to the decision of these appeals. It was made clear that if the appeals are rejected, the ‘Financial Creditors’/ ‘Joint Lenders Forum’ and other Banks with whom the amount is deposited, will have to return the total amount in the respective accounts of the ‘Corporate Debtors’. Admittedly, the ‘Financial Creditors’/ ‘Joint Lenders Forum’ and other Banks have failed to recover any amount by selling the mortgaged properties of the ‘Corporate Debtors’ in spite of the interim order of stay passed on 30th May, 2018. We have also noticed that the ‘Corporate Debtors’- ‘Reliance Infratel Ltd.’; ‘Reliance Telecom Ltd.’ and ‘Reliance Communications Ltd.’ have failed to pay the total amount of ₹ 550 Crores (jointly) till today. As per the interim order, in case of non-payment of the amount and part of the same, the concerned appeal(s) may be dismissed and this Appellate Tribunal may direct to complete the ‘Corporate Insolvency Resolution Process’ and may pass appropriate order. The payment of ₹ 550 Crores in favour of ‘Ericsson India Private Limited’ is also subject to the decision of the appeals. In an appeal filed under Section 61 of the ‘I&B Code’, no direction can be given to any party to the settlement (particularly the third party) to perform certain duties to ensure settlement between other parties. This order will not come in the way of the Appellants to ask for relief as sought for in this interim application from the Hon’ble Supreme Court, which has the jurisdiction to pass appropriate order under Article 142 of the Constitution of India (Enforcement of decrees and orders of Supreme Court and orders as to discovery, etc.). For the reasons aforesaid, no interim order is passed in these Interlocutory Applications in question and they stand disposed of.
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