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Judgment
[Per : Virendra Kumar Gupta, Member (Technical)]
The order in this case was reserved on 02.09.2020. Through this application, Interim Resolution Professional seeking withdrawal of Corporate Insolvency Resolution Process initiated against the Corporate Debtor vide order of this authority dated 10.08.2020 in CP(IB) 57 of 2019.
This application has been filed in terms of provision of Section 12A of Insolvency and Bankruptcy Code, 2016 r.w 30A of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 r.w Rule 8 of NCLT Rules, 2016. COC (Committee of Creditors) has not yet been constituted.
Learned Senior Counsel Mr. Navin Pahwa appeared and submitted that the Corporate Debtor was admitted in to Corporate Insolvency Resolution Process through the order of this Authority as indicated above. However, parties thereafter arrived at settlement between them by signing the consent terms on 31.08.2020. Our attention was also drawn to the contents of such consent terms and specifically to para-10 thereof. It was contended that the withdrawal may be permitted by incorporating the condition that Corporate Insolvency Resolution Process would automatically stand revived against the Corporate Debtor and Insolvency Resolution Process shall be entitled to take over the assets and records of the Corporate Debtor if settlement was not adhered to by the Corporate Debtor. The Counsel on behalf of the Corporate Debtor also agreed.
Accordingly, we allow this application by setting aside order of admission of Corporate Debtor in to Corporate Insolvency Resolution Process and release the Corporate Debtor from the rigours of Insolvency and Bankruptcy Code, 2016. We make it clear that such setting aside would stand cancelled and Corporate Insolvency Resolution Process would automatically be revived against the Corporate Debtor in case the consent terms are breached. We also hold that Interim Resolution Professional shall be entitled to take over the assets and records of the Corporate Debtor on revival of Corporate Insolvency Resolution Process against the Corporate Debtor. We also hold that suitable cost may also be imposed on Corporate Debtor in case of revival of Corporate Insolvency Resolution Process.
Thus, admission of Corporate Insolvency Resolution Process against the Corporate Debtor is set aside in terms indicated above.
Accordingly, IA 532 of 2020 stands allowed and disposed-off.