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Judgment
ORDER
The Application is filed by the Interim Resolution Professional under Section 12A of I&B Code, 2016 Read with Rule 13 of NCLT Rules, 2016 seeking permission to withdraw the Company Petition i.e CP(IB)No.585/9/HDB/2018.
The brief averments made in the Application are as follows:
a) It is averred that this Tribunal vide order dated 25.08.2020 admitted the petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor and ordered initiation of Corporate Insolvency Resolution Process against corporate debtor and appointed IRP. Copy of the order dated 25.08.2020 is annexed to the Application at Page no.6-31.
b) It is averred that the applicant/IRP has issued public announcement on 28.08.2020 calling upon the creditors to submit their claims before the due date.
c) It is averred that after issuing public announcement IRP has received only one claim from the operational creditor who is the petitioner. Further IRP has received the claim and constituted the COC and issued notice for the first COC meeting as per the provisions of the IBC, 2016. Meanwhile, the operational creditor and corporate debtor have settled their disputes by entering into a memorandum of settlement on 21.09.2020. A copy of the Memorandum of Settlement is enclosed to the Application at Page No.35-37.
It is averred that the IRP has received Form FA from operational creditor on 23.09.2020 for withdrawal of the CIRP under Section 12 A of I&B Code, 2016 R/w Regulation 30A of the Insolvency and Bankruptcy Board of India Regulations, 2016. Copy of Form FA is also annexed at Page 34 to the application.
It is further submitted that COC is not yet constituted. CIRP cost including IRP fees, has been paid.
Heard Counsel for Interim Resolution Professional. It is the case of the Interim Resolution Professional that this Tribunal admitted the petition filed under Section 9 of IBC, 2016 on 25.08.2020 for initiation of CIRP, granting moratorium and appointment of IRP.
This Application is filed under Section 12A of I & B Code, 2016, Read with Rule 13 of NCLT Rules, 2016. The Petition filed under Section 9 by the Operational Creditor was admitted by this tribunal on 25.08.2020 and ordered Corporate Insolvency Resolution Process against Corporate Debtor. Interim Resolution Professional reported to the Tribunal that Parties settled the matter and requested the tribunal to withdraw the Petition.
This application is filed stating that parties settled the matter by entering into a Memorandum of Settlement dated 21.09.2020 and resolved the matter amicably.
IRP further stated that CIRP costs including IRP fees, has been paid.
Thus the procedure prescribed under Regulation 30A of IBBI (Insolvency Resolution Process for Corporate Persons), 2016 has been followed. This Adjudicating Authority has power under Section 12A Read with Regulation 30A of IBBI (Insolvency Resolution Process for Corporate Persons) 2016 to permit for withdrawal of the application even after admission of the Petition. By exercising the power U/s 12A of I&B Code the application filed by IRP is allowed and the CIRP started against corporate debtor and moratorium order under Section 14 stands vacated. The Corporate Debtor is allowed to function independently through its Board of Directors with immediate effect.
Accordingly, this Application is allowed.