2022 (5) TMI 1618 - AT - Insolvency and Bankruptcy

Seeking withdrawal of appeal - Application under Section 7 has been admitted - HELD THAT - An Application has been filed by the parties bringing on record a Settlement dated 21.04.2022. The Settlement contemplates that both the parties shall withdraw respectfully the Appeal being Company Appeal as well as the Application under Section 7 filed by the Financial Creditor. The application is allowed taking the Settlement on record and the Appellant is permitted to withdraw the Company Appeal to enable the parties to approach the Adjudicating Authority by filing an Application for withdrawal of Section 7 Application. With regard to expenses etc., it shall be open for the parties to request the Adjudicating Authority to pass appropriate order. The Appeal is permitted to be withdrawn.

Summary

Issues:
1. Appeal against the order passed by the Adjudicating Authority under Section 7.
2. Admission of the Application under Section 7.
3. Settlement between the parties leading to withdrawal of the Appeal and Section 7 Application.

Analysis:
1. The Appeal was filed against the order dated 25.03.2022 by the Adjudicating Authority under Section 7 filed by 'ICICI Prudential Venture Capital Fund Real Estate Scheme-I'. The Appeal was heard, and it was noted that a Reply by the Appellant was filed on 24th March, 2022. However, due to a misunderstanding regarding the filing of the Reply, the Court proceeded to admit the Application under Section 7. The Committee of Creditors (CoC) had not been constituted at that time. The Respondent accepted the notice, and the Respondent was directed to file a Reply-Affidavit within two weeks. The Appeal was listed for further proceedings on 11th May, 2022. In the meantime, the CoC was directed not to be constituted as per the impugned order.

2. Subsequently, an Application I.A. No. 1346 of 2022 was filed by the parties, presenting a Settlement dated 21.04.2022. The Settlement involved the withdrawal of both the Company Appeal (AT) (Ins.) No. 400 of 2022 and the Application under Section 7 filed by the Financial Creditor. The Tribunal allowed the said application, recorded the Settlement, and permitted the Appellant to withdraw the Company Appeal to facilitate the parties to approach the Adjudicating Authority for the withdrawal of the Section 7 Application. The parties were given the liberty to request the Adjudicating Authority for necessary orders concerning expenses.

3. Consequently, the Appeal was allowed to be withdrawn, but no further steps were to be taken based on the impugned order for two weeks. The Tribunal highlighted that this decision was made in the specific circumstances of the case and due to the Settlement between the parties, emphasizing that it should not be considered a precedent for future cases.