2019 (4) TMI 1741 - Tri - Insolvency and Bankruptcy

Permission for withdrawal of petition - Corporate Debtor to secure the payment of the Settlement Amount hereby issues 14 post dated cheques in favour of the Operational Creditor - HELD THAT - Respondent has made a statement that it may be directed to the Petitioner that if the Respondent makes a payment through RTGS in the account of Petitioner, the PDC already issued by the Respondent may be returned to them. Directed accordingly. Petition disposed as withdrawn.

Summary

Issues:
1. Terms of Settlement involving post-dated cheques.
2. Permission to withdraw the petition.
3. Return of post-dated cheques if payment made through RTGS.

Analysis:
1. The judgment revolves around a Terms of Settlement where the Corporate Debtor agreed to issue 14 post-dated cheques to secure the payment of the Settlement Amount. The cheques were issued in favor of the Operational Creditor on specific dates ranging from April 2019 to May 2020. The Terms of Settlement also included provisions for the cheques to be annexed with the Settlement Agreement and marked as "Annexure A."

2. The Petitioner sought permission to withdraw the petition in light of the Terms of Settlement and the issuance of post-dated cheques by the Corporate Debtor. The Tribunal allowed the withdrawal of the petition with the liberty for the Petitioner to bring the matter back to the Bench in case of any defiance or non-compliance by the Corporate Debtor.

3. Furthermore, the Respondent's Counsel requested that if the Respondent makes a payment through RTGS into the Petitioner's account, the post-dated cheques already issued by the Respondent should be returned to them. The Tribunal directed accordingly, ensuring that the return of the post-dated cheques would be facilitated upon payment through RTGS. Subsequently, the petition was disposed of as withdrawn, with the conditions and directions regarding the return of the cheques noted for record-keeping purposes.