2019 (7) TMI 725 - AT - Insolvency and Bankruptcy

Permission for withdrawal of application filed under section 7 of the I B Code - HELD THAT - Learned counsel appearing on behalf of Mr. Satyendra Jain Financial Creditor who filed the application u/s 7 of the I B Code also accepts the aforesaid fact and also agrees for withdrawal of the petition. We allow the Respondent Mr. Satyendra Jain to withdraw the application filed u/s 7 of the I B Code and the impugned order dated 12th February 2019 is set aside passed by the Adjudicating Authority New Delhi Bench - Matter closed as withdrawn.

Summary

Issues:
- Application filed under section 7 of the Insolvency and Bankruptcy Code, 2016
- Settlement between Financial Creditor and Corporate Debtor
- Withdrawal of the insolvency application
- Consequences of withdrawal on interim orders and actions
- Release of Corporate Debtor from insolvency proceedings

Analysis:
The judgment involves an application filed under section 7 of the Insolvency and Bankruptcy Code, 2016 by Mr. Satyendra Jain, a Financial Creditor, against a company. The National Company Law Tribunal admitted the application, leading to the appeal before the National Company Law Appellate Tribunal. The Appellant argued that the debt was not payable in law or was time-barred. However, it was revealed that a suit against the Corporate Debtor had been decreed in favor of the Financial Creditor, with subsequent actions taken to settle the claim.

Regarding the settlement between the Financial Creditor and the Corporate Debtor, it was disclosed that the Committee of Creditors had confirmed the Resolution Professional and unanimously decided to file an application for withdrawal of the Corporate Insolvency Resolution Process. The Financial Creditor and the Corporate Debtor had entered into a settlement, leading to the unanimous decision by the Committee of Creditors to withdraw the insolvency proceedings.

The Tribunal allowed the Financial Creditor to withdraw the application under section 7 of the I&B Code, setting aside the impugned order and closing the matter as withdrawn. Consequently, all orders appointing an Interim Resolution Professional, declaring moratorium, and other actions taken were declared illegal and set aside. The Corporate Debtor was released from the insolvency proceedings to function independently through its Board of Directors.

As the Resolution Professional had been paid fees and costs, no further orders were required. The appeal was allowed with the mentioned observations and directions, with no order as to costs in the circumstances of the case. This comprehensive analysis outlines the key issues addressed in the judgment and the consequential actions taken by the National Company Law Appellate Tribunal.