2020 (2) TMI 542 - Tri - Insolvency and Bankruptcy

Withdrawal of the Company Petition - recall of CIRP ordered - HELD THAT - During the hearing it is submitted by the Operational Creditor and by the Corporate Debtor that all the disputes between the parties have been amicably settled, the prayer sought in the MA may be considered favourably and the relief be granted on an urgent basis. Considering the facts and circumstances, the submission made and the available record, we are of the considered opinion that the prayer sought by the IRP in the current MA be allowed. The CIRP initiated is recalled and IRP is discharged from his role as IRP - the IRP is further directed to hand over the records/books to the management of the Corporate Debtor. Application disposed off.

Summary

Issues:
Application for withdrawal of Company Petition under IBC - Relief sought by Operational Creditor - Consideration of Consent Terms between parties - Public advertisement and claims received - Settlement amount received by Operational Creditor - Discharge of IRP and handing over of records - Levying cost on Corporate Debtor.

Analysis:
The judgment pertains to a Miscellaneous Application (MA) filed under section 12A of the Insolvency & Bankruptcy Code, 2016 (IBC) for withdrawal of a Company Petition (CP) filed under section 9 of the IBC by an Operational Creditor against the Corporate Debtor to initiate Corporate Insolvency Resolution Process (CIRP). The IRP, appointed by the Adjudicating Authority, sought relief to withdraw the CP and recall the CIRP initiated against the Corporate Debtor. The IRP had taken charge, issued public advertisements, and the parties had executed Consent Terms resulting in the Operational Creditor receiving a settlement amount. No significant claims were received except one from the Sales Tax Department of the Government of West Bengal, already under appeal. The parties informed the Bench that all disputes had been settled amicably, requesting urgent consideration of the MA.

The Bench, after considering submissions and records, allowed the prayer sought by the IRP in the MA. Consequently, the CIRP initiated earlier was recalled, and the IRP was discharged from the role. The IRP was directed to hand over records to the Corporate Debtor. It was noted that considerable time was given for settlement before admitting the Petition, and a cost of ?2,00,000 was levied on the Corporate Debtor due to judicial time spent and their conduct. The Corporate Debtor was instructed to pay the cost to the "Prime Minister's National Relief Fund" within ten days, with proof of payment to be submitted to the Court. The MA was disposed of accordingly.

In conclusion, the judgment addressed the application for withdrawal of a Company Petition under the IBC, focusing on the relief sought by the Operational Creditor, consideration of Consent Terms, settlement amount received, discharge of the IRP, and levying of cost on the Corporate Debtor. The decision was made after thorough consideration of submissions, settlement between parties, and the overall circumstances of the case, emphasizing the importance of amicable resolutions and timely legal proceedings.