RAJ KANTILAL SHAH Vs. SANSKAR GEM PVT. LTD.

JUDGEMENT

(1.) This petition seeks an order of adjudication of insolvency by this Court against the Debtor Raj Kantilal Shah of Mumbai.

(2.) It is not in dispute that the Judgment Debtor owes to the Petitioner Rs.21,37,78,446.52. Earlier, on 31/3/2016, the Petitioning Creditor sent demand notice to Judgment Debtor. On 3/5/2016 interim reply was sent by advocate for Judgment Debtor to the Petitioning Creditor. On 9/2/2017, decree on admission was passed in terms of the consent terms dtd. 9/2/2017 in Summary Suit No.657 of 2016. As the Judgment Debtor failed to make payment in terms of the said decree, Insolvency notice dtd. 16/10/2018 was issued which was sealed on 4/12/2018. The Insolvency notice was served upon the Judgment Debtor on 8 th December, 2018 and an affidavit of service was filed in this regard. In accordance with the said insolvency notice the Judgment Debtor had 35 days to make payment of the decretal amount. It is not in dispute that, on 13/1/2019, an act of Insolvency was committed by the Judgment Debtor as he had failed to make payment within 35 days. On 14/1/2019, Notice of Motion No.11 of 2019 was presented by the Judgment Debtor for setting aside the Insolvency notice. Thereafter, within a period of 3 months from 14/1/2019, on 23/1/2019, this Petition on Lodging No. 1 of 2019, was filed by the Petitioning Creditor for an order of adjudication of insolvency of the Judgment Debtor. On 7/3/2019 praecipe was filed by the Petitioning Creditor in the Insolvency Registrar's office for numbering the Petition. The Notice of Motion filed by the Judgment Debtor came to be served upon the Petitioning Creditor on 9/4/2019. The Insolvency Petition was served upon the advocates for the Judgment Debtor on 11/4/2019. After hearing the parties, the Notice of Motion seeking to set aside the Insolvency notice was dismissed on 5/11/2019 by passing the following order :-

(3.) On 18/2/2020, this Insolvency Petition, which was on lodging number earlier, was numbered as Petition No.9 of 2020. On 2/3/2020 an appeal was filed by the Judgment Debtor against the dismissal of the Notice of Motion. On 16/3/2022 the numbered Petition was served upon the Judgment Debtor. On 19/8/2022, order was passed to serve the said Petition upon the Judgment Debtor by three modes and service was completed. On 20/9/2022 the Appeal that was filed against the dismissal of the Notice of Motion was dismissed for non-removal of office objections. On 3/3/2023, order was passed by this Court recording that the Judgment Debtor was desirous of settling the dispute with the Petitioner and time was granted to the Judgment Debtor. On 28/4/2023, order was passed by this Court recording that payments shall be made and the Judgment Debtor shall meet the Petitioner and hold negotiations.