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Judgment
(Hybrid Mode)
This appeal was preferred by the Suspended Director of corporate debtor who challenges the order of the Adjudicating Authority dated 26.11.2024 admitting the corporate debtor to CIRP under Section 7 of IBC.
The Ld. Counsel for the appellant submits that there is only one Financial Creditor who constitutes the CoC and the both the appellant and the financial creditor has entered into a settlement and that this has to go through the Section 12A process.
The RP appear online and submitted that due to an interim order of stay the RP is not able to convene the CoC to place the proposal for its consideration. To a pointed query from us the RP submitted that he has collected few claims but they could not be ascertained since he is yet to take charge of the corporate debtor. The Ld. Counsel for the appellant submitted that when once the CoC is constituted its 90% voting will decide the course of Section 12A. Therefore, the need of participation of any other operational creditors may not be necessary. The settlement proposal has to be placed before the CoC.
We accordingly close this appeal with direction to the IRP to proceed along Section 12A route and as per law. The appellant will be entitled to revive the appeal if the settlement proposal fails. In so far as CIRP cost is concerned, the same is required to taken-up by the CoC.
With the aforesaid directions, appeal is disposed of.