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2020 (2) TMI 1553 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - Home Buyers - existence of debt and dispute or not - HELD THAT - It is a settled position of law that this procedure under the Code is contemplated to be summary in nature, and it cannot manage or decide upon each and every case of individual homebuyers. Lists of individual cases have been placed on record which show that 140 investors have been fully settled by the Corporate Debtor and an amount of ₹ 27.25 crore has been paid to them. 13 claims/Petitioners before us have been settled, 40 are in the process of settlement and 39 pending settlement. Thus the process of settlement appears to be progressing in all seriousness. The Corporate Debtor is directed to settle the remaining claims as expeditiously as possible, but not later than 3 months, and communicate this decision to all the concerned parties - petition disposed off.
Issues:
1. Initiation of Corporate Insolvency Resolution Process under IBC, 2016. 2. Settlement agreement between Financial Creditor and Corporate Debtor. 3. Progress of settlement and claims resolution by Corporate Debtor. 4. Disposal of the case and directions issued by the Tribunal. Issue 1: Initiation of Corporate Insolvency Resolution Process under IBC, 2016: The case involved a petition filed by the Financial Creditor seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to default in payment amounting to ?33,84,32,493. The matter was listed on multiple dates for admission, and both parties were represented by their respective counsels. The Tribunal carefully examined the pleadings and relevant provisions of the Insolvency and Bankruptcy Code. Issue 2: Settlement agreement between Financial Creditor and Corporate Debtor: Both counsels submitted Joint Consent Terms outlining an amicable settlement. The settlement involved the Corporate Debtor agreeing to pay ?17,00,000 in full settlement of the outstanding sum due, with a payment plan and TDS obligations specified. The terms also included provisions for default consequences and withdrawal of disputes upon successful settlement. The Respondent's counsel further provided details of settlements made with other creditors, demonstrating a bona fide intention to resolve outstanding claims. Issue 3: Progress of settlement and claims resolution by Corporate Debtor: The Tribunal acknowledged the Corporate Debtor's efforts in settling claims, highlighting settlements with 140 creditors and steps taken to address pending claims. Emphasizing the summary nature of the Code's procedure, the Tribunal noted the progress made in settling claims and directed the Corporate Debtor to resolve remaining claims within a specified timeframe to safeguard the interests of all stakeholders, particularly homebuyers and creditors. Issue 4: Disposal of the case and directions issued by the Tribunal: Based on the facts presented and the Corporate Debtor's commitment to settlement, the Tribunal disposed of the case with specific directions. The Corporate Debtor was instructed to expedite the settlement of remaining claims within three months and inform all concerned parties. The Tribunal allowed aggrieved petitioners to approach the Adjudicating Authority again if dissatisfied with the settlement process, maintaining a cost-neutral stance in the final order. This detailed analysis covers the key issues addressed in the judgment, including the initiation of insolvency proceedings, the terms of the settlement agreement, the progress of claims resolution, and the Tribunal's directives for case disposal and future actions.
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