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2017 (11) TMI 1578 - Tri - Insolvency and BankruptcyCorporate insolvency procedure - Held that - After the petition is admitted, it cannot be permitted to be withdrawn. Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 says that the Adjudicating Authority may permit withdrawal of the application under Rules 4, 6 & 7 of the Rules, as the case may be on a request made by the applicant before its admission. So, there is no scope of accepting the submission made on behalf of the respondent/Corporate Debtor In any case, it was observed in the order dated 05.07.2017 admitting the petition that copy of the petition along with the entire Paper Book was received by the Corporate Debtor on 30.05.2017. The petition was filed after service of demand notice. However, no caveat was filed by the respondent. The matter was listed today only for passing formal order of appointment of Interim Resolution Professional, The Interim Resolution Professional has already furnished his written communication in Form No. 2 along with the petition as already observed in the order of admission dated 05.07.2017. As per sub-section (1) of Section 16 of the Code, the Adjudicating Authority has to appoint Interim Resolution Professional within 14 days from the date of insolvency commencement date and the date of commencement is the date of admission as per Section 9 of the Code.
Issues involved:
1. Admittance of insolvency resolution process under Section 9 of the Insolvency and Bankruptcy Code, 2016. 2. Request for withdrawal of the application after admission. 3. Appointment of Interim Resolution Professional and related directions. Issue 1: Admittance of insolvency resolution process under Section 9 of the Insolvency and Bankruptcy Code, 2016: The petition was filed by the Operational Creditor under Section 9 of the Code due to default in payment of debt by the Corporate Debtor. The Corporate Debtor failed to appear when the matter was admitted on 05.07.2017. The Adjudicating Authority observed that the petition was filed after service of demand notice and no caveat was filed by the respondent. The Authority issued directions for the appointment of an Interim Resolution Professional within 14 days from the date of admission, appointing Mr. Bhupesh Gupta for the role. Issue 2: Request for withdrawal of the application after admission: The Corporate Debtor, represented by Mr. Jitesh Gupta, sought an adjournment and requested time to pay the defaulting amount even by RTGS transfer. However, the Adjudicating Authority held that after admission of the petition, withdrawal cannot be permitted as per Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Authority emphasized that no scope exists for accepting the submission made on behalf of the respondent/Corporate Debtor. The order of admission detailed the service of notice to the Corporate Debtor and the lack of representation at the time of admission. Issue 3: Appointment of Interim Resolution Professional and related directions: The Adjudicating Authority appointed Mr. Bhupesh Gupta as the Interim Resolution Professional, specifying the term of appointment and the powers vested in the role as per Section 17 and 18 of the Code. The Interim Resolution Professional was directed to prepare an inventory of the Corporate Debtor's assets and to act in accordance with the Code, relevant rules, and professional standards. Additionally, directions were issued for the Professional to constitute the Committee of Creditors promptly, make a public announcement of the initiation of the Corporate Insolvency Resolution Process, and file regular reports with the Tribunal regarding the Corporate Debtor's status. This judgment by the National Company Law Tribunal, Chandigarh, underlines the procedural adherence and legal implications surrounding the initiation and management of the insolvency resolution process, emphasizing the role and responsibilities of the Interim Resolution Professional in overseeing the affairs of the Corporate Debtor.
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