MANU/NL/0947/2023

IN THE NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI

I.A. No. 5365 of 2023 in Company Appeal (AT) (Insolvency) No. 1126 of 2022
Decided On: 21.11.2023
Agarwal Polysacks Ltd. Vs. K.K. Agro Foods & Storage Ltd.
Hon'ble Judges/Coram:
Ashok Bhushan, J. (Chairperson) and Barun Mitra, Member (T)
Counsels:
For Appellant/Petitioner/Plaintiff: Manish Paliwal, Advocate
For Respondents/Defendant: Abhijeet Sinha and Yash Sharma, Advocates
ORDER
IA No.5365 OF 2023:-
1 . This IA has been filed by the Corporate Debtor praying for clarification of the
judgment dated 11.09.2023. Reliefs claimed in the application are as follows:-
"INTERIM RELIEF
It is therefore, most humbly and respectfully prayed that during the pendency
of the present Miscellaneous Application the time period of 30 days as
mentioned in the order dated 11.09.2023 may kindly be extended till the
decision of the present Application.
Any other appropriate order or direction which this Hon'ble Tribunal deems fit
and proper in the facts and circumstances of the case may kindly be pleased to
pass in favour of the Applicant/Corporate Debtor.
FINAL RELIEF
It is therefore, most humbly and respectfully prayed that the Hon'ble Tribunal
may graciously be pleased to allow the present application and the order dated
11.09.2023 may kindly be clarified to the effect that the order dated 11.09.2023
in no manner bars or preclude either the Applicant/Corporate Debtor from
tendering the entire defaulted amount to the Appellant/Financial Creditor or the
Learned NCLT from passing appropriate order in case the defaulted amount is
tendered by Applicant/Corporate Debtor to the Appellant/Financial Creditor.
Any other appropriate order or direction which this Hon'ble Tribunal deems fit
and proper in the facts and circumstances of the case may kindly be pleased to
pass in favour of the Applicant/Corporate Debtor."
2. By our judgment and order dated 11.09.2023, we have allowed the Company Appeal
(AT) (Insolvency) No.1126 of 2022 and in paragraph 33 of the judgment, we have
issued following directions:-
"33. In view of the foregoing discussion and our conclusions, we hold order of
the Adjudicating Authority rejecting Section 7 Application is unsustainable and

17-01-2024 (Page 1 of 2) www.manupatra.com A & A Partners

 deserve to be set aside. In result, we allow the Appeal. Set aside order dated
29.07.2022 and direct the Adjudicating Authority to pass an order admitting
Section 7 application within the period of 30 days from the date copy of this
order is pronounced. Appeal is allowed accordingly."
3 . This Application has been filed by the Corporate Debtor stating that the Corporate
Debtor is ready to liquidate the entire debt of the Operational Creditor and he has also
offered to make the payment by Bank Draft which has not been accepted. It is
submitted that in view of the aforesaid, this Tribunal may issue clarification as prayed in
the application.
4 . We had set aside the order of the Adjudicating Authority and directed the
Adjudicating Authority to pass an order admitting Section 7 application within 30 days.
5 . We clarify that the order passed by us dated 11.09.2023 does not preclude the
Adjudicating Authority to consider the prayer of the Corporate Debtor if it is ready to
pay the entire debt along with the interest to the Operational Creditor. It is open for the
Adjudicating Authority to consider any such offer and if the entire debt is liquidated
there may not be any necessity to admit Section 7 application.
6. Learned Counsel for the Appellant submits that this application for clarification is not
maintainable. The application is filed under Rule 11 of the NCLAT Rules, 2016, we are
of the view that the application for clarification of the judgment can very well be
entertained in exercise of power under Rule 11 and the submission of the Appellant that
application is not maintainable cannot be accepted. With the clarifications as above, we
dispose of this application. We have not modified any of our directions issued in
paragraph 33.
© Manupatra Information Solutions Pvt. Ltd.

17-01-2024 (Page 2 of 2) www.manupatra.com A & A Partners