Mrunal Kanubhai Patel vs Vanshita Trasport And Anr. & Ors.

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NATIONAL COMPANY LAW APPELLATE TRIBUNAL
PRINCIPAL BENCH, NEW DELHI

Comp. App. (AT) (Ins) No. 1214 of 2026

IN THE MATTER OF:
Mrunal Kanubhai Patel …Appellant(s)

Versus
Vanshita Transport Through
Its Proprietor Mr. Nilesh V. Thakkar & Anr.

…Respondent(s)
Present:
For Appellant(s) : Mr. Arun Kathpalia, Sr. Advocate with Ms. Ruby Singh
Ahuja, Mr. Parth Contractor, Ms. Ravneet Kaur Malik,
Ms. Varsha Himatsingka, Advocates.
For Respondents : Ms. Honey Satpal, Mr. Akash Agarwalla, Mr. Aman, Ms.
Tanya Gupta, Advocates.
CA IP Sanjay J. Shah, for R-2/IRP.
Gautam Singh.


O R D E R
(Hybrid Mode)
Reply filed by the Respondent. No. 2/ Interim Resolution Professional
of the CD is taken on record.
2. Heard Shri Arun Kathpalia, Ld. Sr. Counsel appearing for the Appellant,
Ms. Honey Satpal, Ld. Counsel appearing for the Respondent
No.1/Operational Creditor, and Mr. Sanjay Shah appearing for the IRP -
Respondent No. 2.
3. Instant Appeal has been preferred by the appellant, who is the
suspended director and promoter of Monte Carlo Limited (CD) challenging the
judgment and order dated 06/07/2026, passed by the National Company Law
Tribunal, Ahmedabad, Bench (Court-II) passed in CP (IB) No. 246 of 2025,
whereby the petition filed by the operational creditor, Respondent No. 1, was
accepted and the insolvency process was initiated against the CD.
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4. Learned Senior Counsel appearing for the appellant submits that the
corporate debtor is a highly profitable company with a net worth of Rs. 1,962
crores and has audited net profit of Rs. 205.59 crores, Rs. 259.31 crores and
Rs. 231.30 crores in the last three financial years. It is rated as IND AA-/
Positive in the credit ratings, however, has been subject to the CIRP due to
the passing of the impugned order only for a sum of Rs. 1,47,83,503/-.
5. It is further submitted that it was on account of the collusion of one of
the employee of the appellant that the work order for procuring transportation
was given to the operational creditor at a very high price in comparison to the
established market rates of Rs. 1.69 per km and it was surfaced that the said
employee has illegally taken rupees ten lakhs from the OC for luring the
contract for him.
6. It is further submitted that there was prior dispute in the matter with
regard to the measurements and as the billing was also done on the basis that
distance was 825 km each way for the Bhagalpur route, however, a joint
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physical verification was held on 17 February 2025 in the presence of the
police authorities and also in the presence of the proprietor of the Respondent
No. 1 himself, and the distance was measured as 750.2 km, which was also
corroborated by the independent GPS tracking data of approximately 763 km
as per the odometer readings and Google Maps. However, this prior dispute
has not been considered in right perspective by the Ld. Adjudicating
Authority.
7. We recall that when this appeal was first presented before us, it was
argued by Ld. Senior Counsel for the appellant that though the appellant has
a very strong case on merits, to show its bona fide the appellant is ready to
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deposit the amount of ₹ 1,47,83,503/- with this appellate tribunal and for that
purpose, a demand draft of ₹ 1.50 crore has also been prepared.
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8. By passing an order dated 10 July 2026, we communicated our view
to Ld. Senior Counsel, appearing for the appellant, that since the appellant is
a financially sound company and the dispute is only with regard to Rs. 1.47
crores, which may not be of any importance to the appellant, and the same
may be paid to the Respondent No. 1/ operational creditors, subject to the
final disposal of this appeal. Ld. Senior Counsel had fairly submitted that he
will take instructions in this regard. On that day this Appellate Tribunal also
directed that the IRP shall not take any action in furtherance of the impugned
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order dated 6 July 2026 till the next date of listing. We also notice that a
demand draft of Rs. 1.50 crore was accordingly deposited with the registry of
this appellate tribunal.
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9. We also notice that on 14 July 2026 this Appellate Tribunal has
passed the following order:
“Learned Senior Counsel appearing for the Appellant
submits that the Appellant has deposited the whole of the
amount pertaining to which Application under Section 9 of
the Insolvency and Bankruptcy Code, 2016 was filed by the
OC and this Hon’ble Tribunal has very kindly passed an
interim stay order whereby the IRP has been directed not to
take any further steps, but the Appellant is an infrastructure
company and frequently applies for various contracts in
various departments/entities and the impugned order may
be taken as adverse in allotment of contracts etc. in favour
of the Appellant.

In view of the fact that, in compliance of our earlier order the
Demand Draft of Rs. 1.50 cr has already been deposited by
the Appellant, we clarify that till further order the impugned
order, shall not be taken adverse to the interest of the
Appellant in allotment of any contract etc”.

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10. Ld. Senior Counsel, appearing for the appellant, has drawn our
attention towards a clause in the settlement agreement dated July 25, 2026.
In this clause it is stated that the operational creditor has raised certain
claims against the corporate debtor towards transportation charges stated to
be outstanding under the work orders, together with interest and GST thereon
up to the date of filing of the petition, aggregating to approximately Rs. 1.47
crore and these claims were disputed by the corporate debtor in their entirety.
Clause 4.1 of the settlement agreement is also highlighted, wherein it is stated
that the operational creditor irrevocably and unconditionally consents to the
setting aside and quashing of the impugned order and would not have any
objection. It is submitted that in furtherance of this settlement agreement the
whole of the amount which was allegedly due to the corporate debtor of the
operational creditor has been paid and the claim of the operational creditor
has been settled in full and final.
11. Ld. Counsel for the Respondent No. 1, while drawing our attention to
the Affidavit cum undertaking filed by the Respondent No. 1, submits that the
claim of the operational creditor has been amicably settled in terms of the
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Settlement Agreement dated 25 July 2026 and in view of this settlement the
Respondent No. 1/Operational Creditor unconditionally consents to setting
aside and quashing the impugned order. It is submitted that the whole claim
of the OC has been satisfied and he has also received the amount of claim in
full.
12. Perusal of the affidavit filed by the Respondent No. 2, i.e. the Interim
Resolution Professional, would also fortify that after the insolvency
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commencement the public announcement was issued on 8 July 2026 and
only one claim relating to provident fund dues was received from EPFO.
13. Ld. Counsel for the IRP is present through VC and has informed that
up to now only one claim of Rs. 2.98 lakhs of EPFO was filed and the said
claim has been settled/ paid by the corporate debtor. In this regard he has
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relied on an email of date 29 July 2026 sent by the Employees Provident
Fund Organization intimating that the EPFO has received the claimed amount
from the establishment through demand draft. A copy of this email has been
taken on record. Thus it is submitted by the IRP that the only claim he
received was of EPFO and the same has been settled and as of now there is
no claim filed by any creditor.
14. Ld. Senior Counsel, appearing for the Appellant, has also placed on
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record a communication dated 29 July 2026 sent by the Bank of Baroda,
indicating therein that as on date the account of the CD is running standard
and regular and there is no overdue reported in the account. On the basis of
this communication it is submitted that the CD is not in default of any
amount. The said communication placed by Ld. Senior Counsel for the
appellant for our perusal is also taken on record.

15. Having heard Ld. Counsel for the parties and having perused the
record, it is reflected that apart from the fact that parties have settled the
matter amicably it is also evident that the appellant in its pleading has
specifically contended that there was genuine prior dispute in the matter with
regard to the measurement of distance. Though the operational creditor has
filed its response, in this appeal, this contention of the appellant has not been
controverted in the said response and significantly it is stated that the
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operational creditor is not having any objection if the impugned order passed
by the Ld. Adjudicating Authority is set aside or quashed.
16. We also notice that specific averments has been made by the appellant
in the appeal indicating as to how the contract has been procured by giving
bribe to one of the employee of appellant and an F.I.R. in this regard is also
stated to have been lodged against the employee. It is also stated in clause B
of the settlement agreement, which has been signed by CD and OC both that
OC raised claims against CD towards transportation charges stated to be
outstanding under the work orders together with interest and GST
aggregating to approximately Rs. 1.47 Crore were disputed by the CD in their
entirety and in clause C it is stated that OC thereafter issued a demand notice
dated 01.01.2025 which was sent on 04.01.2025. Thus on the basis of all
these facts it is submitted by Ld. Counsel for Appellant that it is a case where
the prior dispute was existing between the parties, even prior to the issuance
of notice under Section 8 of the Code and this issue has not been properly
addressed by Ld. Adjudicating Authority.
17. Ld. Senior Counsel appearing for the appellant has placed before us an
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order dated 10 July 2026 passed by this appellate tribunal in CA (AT) (Ins)
No. 850 of 2026. The relevant portion of the same is reproduce as under:
3. In ‘Rajeev Goyal’ Vs. ‘Sankalp Siddhi Developers
Pvt. Ltd. & Anr.’, (Comp. App. (AT) (Ins.) No. 846/2025) ,
in similar circumstances, the CIRP was directed be closed.
The relevant paragraphs of the judgment, are as below:

“5. We have also gone through the Judgements viz
“Gaurav Bhatia (Suspended Director of Bird Consultancy
Services Pvt. Ltd.) Versus Smriti Bhatia & Ors.”,
Company Appeal (AT) (Ins) No.881 of 2025 as well as
“Sachin Malde Vs. Hemant Nanji Chheda & Anr.”,
Company Appeal (AT) (Insolvency) No. 123 of 2024
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wherein in similar circumstances, the CIRP was directed
to be closed. In the said Judgement, the reference was
also made to “GLAS Trust Company LLC Vs. BYJU
Raveendran & Ors.” Civil Appeal No. 9986 of 2024 which
held in appropriate cases inherent power can be
exercised to close the proceedings. In both these cited
Judgements, the CIRP was directed to be closed and the
Impugned Order was set aside.

6. In view of the law stated above and also the settlement
arrived at between the parties and also that the only
claimants have also withdrawn their claim, hence there
is no impediment in closing of the CIRP. In the
circumstances, the proceedings of Corporate Insolvency
Resolution Process against the Corporate Debtor needs to
be closed. The impugned Order is thus set aside.”

4.Considering the submissions made by the learned Sr.
counsels, the learned counsel for respondent No.1 and in
view of the affidavits filed by the IRP and per ‘Rajeev
Goyal’ (supra), especially considering the fact there are no
claims received despite the publication of ‘Form-A’ for
08.05.2026, we are of the considered opinion there is no
impediment in closing of the CIRP and in view of the
circumstances stated above. Thus, the CIRP of M/s. Prime
Focus Ltd. stands closed.

5. It is submitted by the learned Sr. counsel for the appellant
in view of the above, the lien of the bank on the FDR of
Rs.3,53,79,74,505/- needs to be removed and the parties
shall receive the payments strictly in terms of the Discharge
Agreements dated 01.07.2026. In these circumstances, the
lien stands withdrawn and the money be disbursed to the
parties in terms of the Discharge Agreement dated
01.07.2026.

6. The appeal is thus disposed of. Impugned order stands
set aside. Pending applications are also disposed of”.

18. Keeping in view all the facts and circumstances of this case we are of
the view that parties in their settlement agreement have jointly contended that
there was existence of prior dispute in this case even prior to the issuance of
notice under Section 8 of the Code. The claim of the operational creditor, on
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whose application moved under Section 9, the CIRP was initiated, has also
been satisfied in full and claim of the OC/Respondent No. 1 has been fully
discharged and the OC instead of contesting has stated that he is not having
any objection if the impugned order is set aside. No other creditor has filed
the claim except EPFO, which has been discharged in full and EPFO by
sending email has admitted to have received the amount in satisfaction of
whole of its claim. Thus in our considered opinion the impugned order is liable
to be set aside not only on account of amicable settlement entered into
between the parties but also on the admission of the parties with regard to
the existence of prior dispute and the CIRP of the CD may be closed.
19. In result the appeal is allowed and the impugned order passed by the
Ld. Adjudicating Authority of date 06.07.2026 is set aside and the CIRP of the
CD is hereby closed.
20. In view of the clause 4.5 of the settlement agreement, all the costs of
the CIRP, fees and expenses of the IRP shall be borne by the CD or the
appellant as the case may be.
21. Since it is admitted by Ld. Counsel for the Respondent No.1/OC that
his whole claim has been discharged and paid in full by the CD, there is no
use of keeping the money deposited through demand draft by the Appellant.
Thus we direct Ld. Registrar to return the amount deposited through the
demand draft no. 003531 dated 10.07.2026 of Rs. 1,50,00,000/- drawn on
Axis Bank to the Appellant or his Counsel, strictly in accordance with law.



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22. There is no order as to costs.
23. Pending IA’s, if any, are also disposed of.


[Justice Mohammad Faiz Alam Khan]
Member (Judicial)



[Arun Baroka]
Member (Technical)


[Indevar Pandey]
Member (Technical)
New Delhi
03.08.2026
sr




CA (AT) (Ins) No. 1214 of 2026