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Judgment
This is an application filed by the Applicant/IRP under Section 12A of the Insolvency and Bankruptcy Code, 2016 with Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 read with Rule 11 of NCLT Rules, 2016 with the following prayers:
a. Allow the present Application;
b. Allow the withdrawal of the Application filed by Financial Creditors under Section 7 of the Insolvency and Bankruptcy Code, 2016 being C.P.(IB) No.31/AHM/2025 in terms of Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 after the constitution of the Committee of Creditors;
c. Pass such other or further order/order(s) as may be deemed fit and proper in the facts and circumstances of the instant case.
In compliance of last order, the IRP is present and additional affidavit has been filed on 31.10.2025 vide Inward No. D 7296 along with copy of the OTS settlement arrived between the Financial Creditor whose instance Section 7 proceedings were initiated against the Corporate Debtor and between the Suspended Management.
As per that OTS dated 10.09.2025, a settlement arrived for Rs.49,00,00,000/- to be paid by the 3rd party who is also one of the Financial Creditor in the CoC i.e. Sneh Deep Reality Private Limited. On the basis of the said settlement Form-FA was provided to the IRP by the Financial Creditor on 30.09.2025 for withdrawal of the CIRP initiated against the Corporate Debtor which was placed before the CoC. In 4th CoC meeting held on 03.10.2025, unanimously resolved for withdrawal of the CIRP proceeding initiated against the Corporate Debtor with 100% majority.
It has been apprised that as per OTS settlement dated 10.09.2025, the entire amount is to be paid by the 3rd party/Financial Creditor in five instalments, out of which one instalment of Rs.9,00,00,000/- has been already stand paid. Further, the IRP who present through physically mode states that entire CIRP cost has been paid, nothing due is left to be recovered.
We have heard the learned counsel for the Applicant/IRP as well as IRP in person and perused the record. Since the settlement has been arrived after the constitution of the CoC which required minimum 90% consent of the CoC for approval of 12A proceedings. Herein, the 100% majority approved the same on 03.10.2025 in 4th CoC meeting on the basis of the settlement arrived between the Suspended Management of the Corporate Debtor as well as one of the Financial Creditor.
In view of the above, the CIRP, which was initiated against the Corporate Debtor – Tensile Steel Limited vide order dated 03.07.2025 is hereby terminated, and the CP(IB)/31(AHM)2025 admitted under Section 7 of the IBC stands withdrawn. Consequently:-
- (a) The moratorium imposed under Section 14 of the IBC ceases to have effect from the date of this order. - (b) The Corporate Debtor is released from the rigours of CIRP and is to function through its own Board of Directors/Management. - (c) The Applicant/IRP is discharged from his duties and responsibilities with effect from the date of this order.
The Applicant/IRP and Registry shall forthwith forward a copy of this order to the Corporate Debtor, Registrar of Companies, and Bankruptcy Board of India (IBBI), for necessary compliance and records.
In view of the above, IA/1220(AHM)2025 stands allowed and disposed of.