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Judgment
06.03.2025: This Appeal has been filed against an Order dated 03.07.2024 passed by the Adjudicating Authority admitting Section 7 Application filed on behalf of Mr. Ishwar Punjabi, the Financial Creditor.
When the Appeal was taken, Counsel for the Appellant stated that Appellant is willing to deposit the principal amount. On 23.07.2024, following Order was passed:
“1.Learned Counsel for the Appellant submits that although Appellant does not accept that there is any financial debt involved in Section 7 application, however, to show his bonafide without prejudice to the rights and contentions of the parties, he is willing to deposit the principal amount as shown in Part-IV of Form-1 of Rs.9,73,00,000/- within two weeks from today.
2.Let the said amount be deposited by the Appellant within two weeks from today. Learned Counsel for the Appellant is permitted to file an Additional-Affidavit within one week.
3.List this Appeal on 07.08.2024.
Till the next date, CoC in pursuance of the impugned order be not constituted.”
An I.A. has been e-filed on 05.03.2025 by the Appellant as well as the Financial Creditor bringing on record the settlement between the parties dated 28.02.2025.
Learned Counsel for the Appellant submits that in view of the settlement between the Parties, the CIRP may be closed in the Appeal. It is not disputed that there are other Financial Creditors including the State Bank of India.
In view of the settlement between the Parties, it is open for the Financial Creditor, the Respondent herein to file an appropriate Application under Section 12A for withdrawal of the CIRP, which may be considered and decided by the Adjudicating Authority in accordance with the law considering all relevant facts into consideration.
Counsel for the Respondent No. 1 submits that Application shall be filed within three days. The Adjudicating Authority may consider and dispose of the Application as early as possible preferably within a period of two weeks.
Appeal disposed of.
The interim protection which was granted in this Appeal shall continue till an Order is passed by the Adjudicating Authority. Subsequent proceeding shall take place on basis of the Order of the Adjudicating Authority.