This complaint has been filed against the Company, namely, M/s IREO Fiveriver Pvt. Ltd. through its Director(s) under Section 17 of the Consumer Protection Act, 1986 with a prayer to refund the amount alongwith interest, compensation & litigation expenses for deficiency in service and indulgence into unfair trade practice. Large number of similar cases are pending and fixed before this Commission today and on various other dates. On some earlier date(s), in complaint(s) filed against this very Company, Sh. Rohit Tanwar, AGM (Legal) of the opposite parties had brought to our notice an order passed by the National Company Law Tribunal Principal Bench, New Delhi on 13.12.2018 in C.P.No.IB-408(ND)/2018 in the case titled as M/s WORXPACE CONSULTING PRIVATE LIMITED VERSUS M/S IREO FIVERIVER PRIVATE LIMITED, stating that these proceedings cannot continue in view of above order passed.

                We have gone through the order, as referred to above, wherein, few financial creditors filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (in short ‘the Code’) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (in short ‘the Rules’) with a prayer to initiate Corporate Insolvency Resolution Process against the Company, namely, M/s Ireo Fiveriver Private Limited.

                Taking note of the averments made and after hearing Counsel for the parties, finding no substance in the arguments raised by the Company, the Tribunal was satisfied that the Company has committed a default and accordingly proceedings under Section 9(5) of the Code were initiated and Interim Insolvency Resolution Professional was appointed and moratorium was also issued, in terms of Section 14 of the Code, imposing following prohibitions :-

“(a)                     the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;

(b)            Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein;

(c)            any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

(d)            the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.

However, during the pendency of the moratorium period in terms of Section 14(2) and 14(3) as extracted hereunder:

(2)      The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period.

(3)      The provisions of sub-section (1) shall not apply to –

a. such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

b. a surety in contract of guarantee to a Corporate Debtor.”  

                In view of above, we are of the opinion that it is not possible for us to continue with the complaint. Counsel for the complainant(s) has also failed to show anything to the contrary. There is nothing on record to show that the order passed by the National Company Law Tribunal Principal Bench, New Delhi, as referred to above, was put under challenge or interim stay was granted against it by higher Forum.

                In view of above, we are of the opinion that to continue with this complaint will be a futile exercise.

                Accordingly, this complaint stands disposed of. However, liberty shall remain with the complainant(s) to file an application to get it revived as and when occasion so arises in future and/or the order passed by the National Company Law Tribunal Principal Bench, New Delhi is set aside and/or becomes ineffective.

                As per the order referred to above passed by the National Company Law Tribunal Principal Bench, New Delhi, the complainant(s) may be at liberty to file a claim before the competent authority, as referred to in the said order.

                Certified copies of this order be sent to the parties, free of charge.