2020 (2) TMI 1308 - AT - Insolvency and Bankruptcy

Constitution of CoC - Appellant states that the Appellant is taking steps to settle the dispute with the Original Operational Creditor as well as sole Financial Creditor State Bank of India and will make efforts to settle with other Operational Creditors also - HELD THAT - List the Appeal in Orders category on 26th February, 2020 before which date the Appellant must ensure settlement as stated by the learned Counsel. In default, we will proceed to vacate the direction with regard to constitution of COC.

Summary

Issues: Compliance with Undertakings, Settlement of Dispute with Creditors, Continuation of Interim Order

In response to an Order dated 3rd February, 2020, the Respondents in I.A. No.516 of 2020 filed Affidavits. Shri Deepak Daga's Affidavit, along with an Undertaking, was submitted at Diary No.18601, while Manoj Daga tendered an Affidavit at Bar with an Undertaking dated 5th February, 2020. The Counsel confirmed that both Respondents understood and signed the Undertakings, which were accepted and recorded. The Respondents were directed to comply with the Undertakings. The Counsel for the Appellant informed that steps were being taken to settle disputes with the Original Operational Creditor and the sole Financial Creditor, State Bank of India, with efforts to settle with other Operational Creditors as well. A request was made to continue the Interim Order, delaying the constitution of the Committee of Creditors (COC) to allow time for settlement. One final opportunity was granted, listing the Appeal in the 'Orders category' on 26th February, 2020, by which date the settlement must be ensured. Failure to comply would result in the vacation of the direction regarding the COC's constitution.