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Judgment
These two appeals have been filed by the same Appellant challenging the order dated 10.02.2023, by which the application filed by RP u/s 33(2) for initiation of liquidation process has been allowed and the application filed by the Appellant praying for closing the CIRP under 12A has been rejected. The application which has been filed by the Appellant u/s 12A is the application where the Appellant has made the following prayers:-
i) “Direct the Respondents to produce the minutes of the 30th meeting of the CoC of the Corporate Debtor and to place the same on record;
ii) Close the CIRP of the Corporate Debtor by treating the same to have been withdrawn under Section 12A of the IBC by acceptance of the restructuring proposal submitted by the Applicant;
iii) Pending the hearing and final disposal of the present case, stay all further proceedings in the CIRP of the Corporate Debtor;
iv) Any other order that this Hon’ble Tribunal may deem fit in the facts and circumstances of this case.”
The Adjudicating Authority has observed that since 12A application has not been filed by the IRP, the same cannot be entertained.
Learned Counsel for the Appellant submits that Adjudicating Authority has not considered the application on merit and on a technical ground, rejected the application.
We have considered the submission of the Learned Counsel for the and perused the record.
The application which was filed u/s 12A is an application where Appellant has claimed that he has submitted a restructuring proposal which should be accepted. Section 12A provides as follows:-
“12A. Withdrawal of application admitted under section 7,9 or 10 – The Adjudicating Authority may allow the withdrawal of application admitted under section 7 or section 9 or section 10, on an application made by the applicant with the approval of ninety per cent voting share of the committee of creditors, in such manner as may be specified.”
Present is the case where CoC has already been constituted and the Resolution Plan were under consideration by the CoC. The application filed by the Appellant cannot be treated to be an application for settlement u/s 12A.
Any proposal for re-structuring cannot be treated to be the proposal u/s 12A, hence, we do not find any error in rejecting the application filed by the Appellant. Moreover, there is no consent by 90% of CoC in favour of 12A proposal of the Appellant.
We do not find any error in the order of the Adjudicating Authority, the appeal is dismissed.
It is further to be noted that 12A proposal was actually given by Shri Pradeep Nandlal Dhoot which was also considered and rejected by CoC in 30th CoC meeting.