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Judgment
ORDER
22.08.2024: The present appeal is filed u/s 61 of the Code, 2016 against an order dated 27.09.2023 passed by Learned NCLT, Ahmedabad Branch wherein an application preferred by R-2 u/s 9(5) of the Insolvency and Bankruptcy Code, 2016 was admitted and CIRP was initiated against the Corporate Debtor.
On 06.10.2023, this Tribunal had issued notice to the Respondents and had stayed the impugned order dated 27.09.2023 subject to deposit of Rs. 2,32,11,783/-. The said amount was deposited by way of FDR in the name of Registrar, NCLAT on 10.10.2023. A copy of the FDR is annexed as Annexure A-2.
During the pendency of this appeal, the Corporate Debtor and Respondent No. 2 had arrived at a mutual settlement agreement vide Settlement Deed dated 14.08.2024. As per the said settlement, the Corporate Debtor has already paid an amount of Rs. 1,91,00,000/- vide Demand Draft bearing No. 638985 dated 14.08.2024 drawn on Kotak Mahindra Bank, Ahmedabad to Respondent No. 2 towards full and final settlement of all dues and towards extinguishment of all claims/liabilities of any kind against the Corporate Debtor. The Settlement Agreement is annexed herewith as Annexure A-3.
The reference is made to Swiss Ribbon Private Limited & Ors. V. Union of India & Ors., 2009(4) SCC 17 and also Anuj Tejpal V. Rakesh Yadav & Anr. in Comp. App.(AT)(Ins.) No. 298/2021 wherein the Tribunal had exercised its inherent powers and had allowed withdrawal of CIRP proceedings prior to the constitution of the CoC. In the presence case, the CoC has not yet been constituted.
The application is filed so as to release the Corporate Debtor from the CIRP process and to enable it to function independently. Learned Counsel for IRP (R-1) is also present and he has no objection in case the application is allowed. Thus the Impugned order dated 27.09.2023 passed by Ld. NCLT, Ahmedabad Branch is set aside in view of the settlement dated 14.08.24 between the Corporate Debtor and R2. In these circumstances, CIRP stands quashed/closed against the Corporate Debtor.
The FDR Annexure A-2 which was got prepared by the Appellant in the name of Registrar, NCLAT, New Delhi, be released the Appellant who shall be entitled to the FDR amount along with interest accrued thereupon. The Appeal stands disposed of. All pending applications, if any, are also disposed of.