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Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (3) TMI Tri This

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2020 (3) TMI 160 - Tri - Insolvency and Bankruptcy


Issues:
Application under Section 12A of I&B Code seeking permission to withdraw Company Petition CP(IB)No.419/9/HDB/2019.

Detailed Analysis:

1. Admission of Petition under Section 9:
- The Application sought permission to withdraw the Company Petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, after the Tribunal admitted the petition and initiated the Corporate Insolvency Resolution Process against the corporate debtor.
- The parties settled the issue after a moratorium order was passed, with the operational creditor paying an amount towards full settlement.
- No claims were received after paper publication, and the corporate debtor undertook to discharge any future claims without prejudice to its rights.

2. Constitution of CoC and Approval:
- The Interim Resolution Professional (IRP) stated that since the Committee of Creditors (CoC) was not constituted, approval with 90% voting share was not required as per Section 12A.
- The IRP reported that both parties settled the matter amicably, and the operational creditor requested to withdraw the Corporate Insolvency Resolution Process (CIRP) proceedings.

3. Compliance with Regulations:
- The IRP followed the procedure prescribed under Regulation 30A of IBBI for withdrawal of the application.
- The IRP provided details of expenses incurred, payments made, and copies of relevant documents such as receipts, demand drafts, and the Memorandum of Understanding (MoU).

4. Authority to Permit Withdrawal:
- The Adjudicating Authority had the power under Section 12A, read with Regulation 30A of IBBI, to allow withdrawal of the application even after the petition's admission.
- By exercising the power under Section 12A of the I&B Code, the Tribunal granted permission for the withdrawal of the CIRP filed against the corporate debtor, thereby lifting the moratorium order and allowing the corporate debtor to resume independent operations through its Board of Directors.

5. Decision and Conclusion:
- The Tribunal allowed the Application under Section 12A of the I&B Code, acknowledging the settlement between the parties and permitting the withdrawal of the Company Petition.
- Consequently, the CIRP against the corporate debtor was withdrawn, the moratorium order was lifted, and the corporate debtor was authorized to function independently through its Board of Directors with immediate effect.

This detailed analysis encapsulates the key aspects of the judgment, outlining the legal grounds, procedural compliance, and the Tribunal's decision to permit the withdrawal of the Company Petition under Section 12A of the Insolvency and Bankruptcy Code, 2016.

 

 

 

 

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