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Judgment
Per: K.Anantha Padmanabha Swamy, Member Judicial
Under consideration is a Interlocutory Application bearing IA No. 758 of 2019 in CP (IB) No.146/09/HDB/2019 filed by Resolution Professional (RP) under section 12A of the Insolvency and Bankruptcy Code, 2016, seeking to allow the present Application and accord permission to the operational Creditor to withdraw the Petition bearing CP (IB) No. 146/9/HDB/2019 before issue of Expression of Interest, in terms of the settlement of debt.
It is stated that the petition bearing CP (IB) No.146/9/HDB/2019 was admitted for CIRP vide this Adjudicating Authority’s order dated 02.08.2019 and this Adjudicating Authority vide order dated 02.08.2019 appointed Mrs. M.S. Mano Ranjani as the Interim Resolution Professional (IRP).
It is stated that a settlement has been reached between Corporate Debtor represented by Mr. Gurajala Mahadeva Lokesh, erstwhile Director of the Corporate Debtor and the Operational Creditor represented by Mr. Davinder Bharaj, its authorized person whereunder, a full and final settlement of the claim of ₹ 11,39,353/- (towards the principal amount of ₹ 8,73,285/- + interest @ 18% of ₹ 1,57,091/- + the penalty imposed by the Central Sales Tax Dept. for non-submission of C Form of ₹ 1,08,977/-), has been settled at ₹ 9,25,000/- along with issue of pending C Forms. Further, as on date there is no outstanding fees payable to the IRP with respect to the CIRP.
It is stated that the Corporate Debtor made the payment towards full and final settlement vide DD No.804332 dated 07.09.2019 drawn on Indian Bank for ₹ 9,25,000/- and issued the pending C Forms to the Operational Creditor and the same has been realized for the operational debt which stands fully and finally settled.
It is stated that the Supreme Court in Swiss Ribbons Private Limited Vs Union of India & Ors in WP. No.99 of 2018 dated 25.01.2019 Supreme Court (para 52) observed that at any stage where the CoC is not constituted, a party can approach the Adjudicating Authority directly and the Adjudicating Authority by exercise of its inherent powers under Rule 11 of the NCLT Rules, 2016 can allow or disallow the application after hearing all the concerned parties depending on the facts of the case.
It is further stated that on 25.07.2019, the Insolvency and Bankruptcy (CIRP) Regulations, 2016 were also amended and as per the amended Regulations, under Regulation 30A(1)(a) "An Application for withdrawal under 12A of the IB Code, 2016 may be made to the Adjudicating Authority before the constitution of Committee, by the Applicant through the interim Resolution Professional."
It is also stated that the Applicant has made necessary arrangement to defray the expenses incurred by IRP up to the filing of the said application.
It is stated that the present application is being made bona fide and in the interest of justice, equity and good conscience and further prayed to allow the Application as prayed for.
Heard and perused the record.
The Instant Application is filed by IRP seeking permission to allow the present Application and accord permission to withdraw the Petition bearing CP(IB) No. 146/9/HDB/2019.
It is observed that the provisions of Regulation 30A are duly complied as Form FA is submitted before issuing Expression of Interest. As on date there is no outstanding fees payable to the IRP and further necessary arrangements are made to defray the CIRP Cost.
This Adjudicating Authority by exercising its power U/s 12A of the IB Code, 2016, R/w Regulation 30A(1)(a) of Insolvency & Bankruptcy (Insolvency Resolution Process of Corporate Persons) Regulations 2016, is empowered to allow the prayer for withdrawal. Having satisfied with the submissions put forth by the Applicant and having seen that the Applicant has complied with all the requirements as contemplated under Regulation 30A supra, this Adjudicating Authority is inclined to allow the Application.
Consequently, Application filed by RP is to be allowed and Moratorium order passed under section 14 of the IB Code, shall cease to have effect.
In the result, IA No. 758 of 2019 is hereby allowed and Corporate Insolvency Resolution Process (CIRP) in CP (IB) No. 146/9/HDB/2019 stands withdrawn and CIRP stands closed.