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Judgment
O R D E R
Per: Satya Ranjan Prasad, Member (Technical)
The instant Interlocutory Application bearing IA (IB) No. 126/CTB/2022 in CP (1B) No. 145/CTB/2019 is filed by Interim Resolution Professional (IRP) under section 12A of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IB Code”) on behalf of the Operational Creditor, inter-alia, seeking to withdraw the CIRP process initiated against Srabani Constructions Pvt. Ltd. vide Order of this Tribunal dated 21.04.2022 and to set-aside the moratorium under section 14 of the IB Code.
Applicant states that the Operational Creditor had filed C.P (IB) No. 145/CTB/2019 against the Corporate Debtor under Section 9 of the IB Code before this Tribunal. The same was admitted by this Bench on 21.04.2022 and Mr. Sri Chaitanya Kumar Ray, was appointed as Interim Resolution Professional
The applicant states that in compliance with the requirements specified under CIRP regulations and IB Code, 2016, he made public announcement on 23.04.2022 in Form A in one regional language Odiya newspaper ‘Dharitri’ and in one English newspaper ‘Statesman’. The same was also published in IBBI website under the provisions of Regulation 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulation, 2016 calling upon all the creditors of the Corporate Debtor to submit their claims with the IRP by 06.05.2022.
Applicant states that pursuant to the above, and before the COC was constituted the promoters/suspended directors of the Corporate Debtor and the Operational Creditor agreed to settle the matter and the parties have executed a Settlement Agreement whereby their differences have been amicably settled. Further, that in the said Settlement Agreement, the promoters/ suspended management of the Corporate Debtor have agreed to pay an amount of Rs. 20,81,318/- (Rupees Twenty Lakh Eighty-One Thousand Three Hundred and Eighteen only) to the Operational Creditor as full and final settlement amount and the Operational Creditor has agreed for withdrawal of the present petition C.P (IB) No. 145/CTB/2019 and for closure of the Corporate Insolvency Resolution Process of the Corporate Debtor i.e., Sarbani Construction (P) Ltd.
Applicant submits that Form FA (Application for withdrawal of Corporate Insolvency Resolution Process) has already been filed in terms of Regulation 30A(1)(a) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulation 2016 read with Section 12A of the IBC Code, along with Bank Guarantee of Rs.1,00,000/- and payment of Rs. 1,00,000/- made to IRP towards CIRP costs. Ld. RP has provided relevant details and money receipt in this regard vide an affidavit filed on 09.06.2022.
This Tribunal notes that there are no circumstances that militate against the grant of approval for closure of CIRP. This Adjudicating Authority is empowered to allow the prayer for withdrawal by exercising its powers under Section 12A of the IB Code, 2016, read with Regulation 30A of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulations 2016. As per the regulation the petitioner has to furnish the estimated expenses and actual expenses incurred till the date of filing of this petition and is required to submit Bank Guarantee for the amount of estimated cost, but here the petitioner/RP reported that total cost incurred was Rs. 1,99,996/-, out of which Rs. 1,00,000/- he has received towards the fee form the petitioner and submitted Bank Guarantee only for Rs. 1,00,000/-. Now, vide an affidavit dated 09.06.2022 the IRP has filed the receipt towards his fee and stated that the fee amount was paid by petitioner. Hence, after deducting the said fee amount Bank Guarantee submitted for balance amount of Rs. 1,00,000 is accepted as an exceptional case to avoid further delay.
In the result, the Petition bearing CP (IB) No. 145/CTB/2019 is allowed to be withdrawn in terms of provisions of section 12A of the IB Code, read with relevant Rules and Regulation 30A and CIRP and shall stand closed.
In the circumstances stated above, it is ordered as follows:
This withdrawal application I.A (IB) No. 126/CB/2022 is allowed in consequence the CIRP initiated against the Corporate Debtor shall stand terminated.
The petitioner is directed to deposit an amount of Rs. 99,996/-being the actual expenses incurred less the above stated IRP fees of Rs. 1.00 lakh, till the date of the order of approval as determined by the Interim Resolution Professional within three days in the Bank Account of the Corporate Debtor.
The Board of directors of the Corporate Debtor is restored to its original position.
The IRP is hereby directed to hand over the books of accounts to the hands of restored Board of Directors and the IRP is hereby shall stand discharged. The moratorium which came into effect in consequence of the order of admission dated 21.04.2022 is stand cancelled. The Corporate Debtor is relieved from the rigorous clutches of all the action initiated in the proceeding.
The IRP is hereby directed to file a report to this Adjudicating Authority about the compliance with proof of non-compliance of the supra clause (ii) of this order within three days from the date of expiry of time granted in the said clause.
Registry is directed to communicate this order to ROC, Odisha.
Registry is directed to invoke the Bank Guarantee in the event of non-compliance of condition set out in clause (ii) of this order i.e., fails to deposit the amount into the Bank account of the Corporate Debtor, immediately after the expiry of time limit set out in clause (e) of this order.
Registry is directed to return the original Bank Guarantee to the petitioner after receipt of compliance report of IRP as set out in clause (e) of this order, after retaining the photo copy of the same and obtaining proper acknowledgement.
Let the certified copy of the Order be issued upon compliance with the requisite formalities.
File be consigned to records.