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Judgment
ORDER (Bench)
This is an Application filed by the Interim Resolution Professional (IRP) in terms of Section 12A of IBC, 2016 read with Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 seeking for withdrawal of CP (IB)/48/9/AMR/2022, which was admitted by this Tribunal vide orders dated 06.09.2024 with a liberty to revive the CIRP in case the CD fails to comply with the terms of the MoU.
M/s. Microcare Computers Private Limited, (“Operational Creditor”) had filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor vide CP(IB)/48/9/AMR/2022 for initiation of Corporate Insolvency Resolution Process against Verticross India Private Limited, (“Corporate Debtor”) and the same has been admitted by this Authority vide its order dated 06.09.2024 and Mr.Namburu Naga Venkata Pardha Saradhi, (Applicant herein) was appointed as Interim Resolution Professional.
It is submitted that the Applicant received order dated 06.09.2024 from the NCLT website on 10.09.2024 and certified copy received on 11.09.2024. On 11.09.2024, the applicant received an email along with MoU of settlement from the OC regarding the settlement between the parties. Accordingly, the Interim Resolution Professional has not constituted the “Committee of Creditors” (“CoC”).
It is submitted that the parties have settled the matter and the Operational Creditor submitted Form FA dated 12.09.2024 to the Interim Resolution Professional and hence Interim Resolution Professional filed this Application seeking withdrawal of this Company Petition. The Petition is accompanied by the MoU dated 10.09.2024.
Heard. The Ld. IRP confirmed that the complete fee under Regulation 30A (1) (c) & (d) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 was received.
A judgment of the Supreme Court between Abhishek Singh vs. Huhtamaki PPL Ltd & Anr, can be taken support of while allowing with this Application. In the said judgment also the facts reflect that the application under section 12A was filed before the constitution of Committee of Creditors (CoC). The Supreme Court observed that in the circumstances mentioned therein, the NCLT should have exercised its inherent powers to meet the ends of justice. According to Section 12A, the Adjudication Authority may allow the withdrawal of Application admitted under Section 7 or Section 9 or Section 10 on an application made by Applicant before the constitution of “Committee of Creditors” (“CoC”).
In view of the above judgment and taking consideration of the submissions made by the Ld. Counsels as well as the averments contained in the application, we deem it fit that both the Operational Creditor (OC) and the Corporate Debtor (CD) must bear the costs for wasting the judicial time of the Tribunal. This withdrawal application is allowed subject to the condition that both OC and CD have to pay cost of Rs.50,000/- (Rupees Fifty Thousand Only) each which is to be deposited in “Bharatkosh.gov.in (Non-Tax Receipt Platform (NTRP))” within one month from today and file a memo of compliance. In the circumstances, CP(IB)/48/9/AMR/2022 stands withdrawn.
The CIRP initiated by this Tribunal against the Corporate Debtor in CP(IB)/48/9/AMR/2022 vide order dated 06.09.2024 stands withdrawn and the IRP is discharged from all his responsibilities subject to payment of costs.
Accordingly, IA (IBC)/328/2024 stands allowed. CP (IB)/48/9/AMR/2022 stands dismissed as withdrawn.