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Judgment
Heard Learned Counsel for the parties.
This Appeal has been filed against the Order passed by the Adjudicating Authority on 02nd May, 2022. By which Order, Application under Section 9 filed by the Respondent-Operational Creditor has been admitted. The Appellant is suspended director of the Corporate Debtor.
In this Appeal, on 19th May, 2022, the Appellant submitted that the Appellant is ready to settle the matter with the Respondent and adjournment was sought. Further on two occasions, the matter was adjourned awaiting any Settlement. Learned Counsel for the Respondent submits that he has instructions that no negotiations regarding the Settlement are under way.
Learned Counsel for the Appellant submits that a further 15 days’ time may be allowed and in event the Settlement does not take place, CIRP may proceed, thereafter.
We have perused the Order impugned passed by the Adjudicating Authority. The finding has been recorded by the Adjudicating Authority that Operational Debt is proved hence the Order of Admission was passed. We do not find any error in the Order admitting Section 9 Application. We have by our Order dated 19th May, 2022 directed the IRP to proceed with collating the claims but shall not constitute the Committee of Creditors.
We dismiss this Appeal. Consequently, IRP shall proceed in accordance with the Impugned Order. We further grant liberty to the Appellant to file an Application under Section 12-A of the IBC, 2016 within 15 days from today, if no settlement takes place after 15 days, IRP shall be entitled to constitute the Committee of Creditors.
The Appeal is dismissed, subject to above.