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Judgment
O R D E R
Ld. Sr. Counsel present on behalf of the applicant. Mr. Gopal Kumar Agarwal, present on behalf of the Members of the Suspended Board. Ld. Counsel present on behalf of the Operational Creditor. Mr. Santosh Choraria, IRP present in person.
IA 967 (KB) 2021 in CP (IB) 911 (KB) 2020 is an application under Section 60(5) of the Corporate Insolvency Resolution Process (CIRP) for closure of the CIRP initiated against the Corporate Debtor vide order dated 03.11.2021.
This application ought to have been filed properly under Section 12A read with Regulation 30A(1)(a) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations 2016. The application has been filed prior to the constitution of the Committee of Creditors (CoC) based on the settlement arrived at between the Members of the Suspended Board and the petitioning Financial Creditor. The Settlement Agreement dated 10.11.2021 has been placed on record. This is after the order of admission of the main Company Petition on 03.11.20221. The Settlement Agreement envisages future payments upto 10/05/2022.
The IRP is present in person. He submits that there are no other claims at this point of time in response to the Public Notice issued on 04.11.2021.
Ld. Sr. Counsel appearing for the applicant submits that in terms of para 52 of the judgment of the Hon’ble Supreme Court in Swiss Ribbons Private Limited and another vs. Union of India and Others (para 52 of the original judgment of the Hon’ble Supreme Court) at any stage where the Committee of Creditors is not yet constituted a party can approach the National Company Law Tribunal (NCLT) directly which Tribunal may in exercise of its inherent powers under Rule 11 of the NCLT Rules, 2016 allow or disallow an application for withdrawal or settlement which will be decided after hearing the concerned parties and considering all relevant factors on the facts of each case.
We have perused the application and heard the Ld. Sr. Counsel appearing for the applicant, the Ld. Counsel appearing on behalf of the Operational Creditor and Mr. Santosh Choraria, IRP appearing in person. Since there are no other claimants in response to the public advertisement, there may be no impediment in allowing the present application. Also the fees of the IRP are stated to have been paid in full.
In view of the above, we hereby allow the I.A. 967 (KB) 2021 and pass the following orders:-
The CIRP initiated vide an order dated 03.11.2021 is hereby recalled and the Corporate Debtor is freed from the rigours of the CIRP.
The Board of Directors of the Corporate Debtor is restored to its original position.
The IRP is hereby directed to handover the Corporate Debtor and all its assets and documents back to the restored Board of Directors of the Corporate Debtor.
The IRP shall stand discharged from his role.
C.P. (IB) 967 (KB) 2021 shall consequently stand closed. File be consigned to the records.