2020 (7) TMI 358 - AT - Insolvency and Bankruptcy

Settlement of all dues - Approval of Resolution Plan - CIRP process - time period of 180 days - Section 17 of the Insolvency and Bankruptcy Code 2016 - HELD THAT - All the dues of the applicant/appellant has been settled as one time settlement and paid in full. These three appeals listed before us today have become redundant - the appeals filed by the appellants are dismissed as infructuous.

Summary

Issues:
Challenging Commissioner's order | Application under Sick Industrial Companies (Special Provisions) Act, 1985 | Corporate Insolvency Resolution Process | Settlement of litigations | Dismissal of appeals

Challenging Commissioner's Order:
The appellants filed three appeals challenging the Order No.01/Commissioner/CE/DIB/09 dated 09.03.2009 passed by the Commissioner of Central Excise, Dibrugarh, confirming demands raised against them.

Application under Sick Industrial Companies (Special Provisions) Act, 1985:
M/s.Kitply Industries Limited, facing financial losses, filed a reference application under Section 15 of the SICA, which was later repealed. Subsequently, under the Insolvency and Bankruptcy Code, 2016, a resolution process was initiated, and a Resolution Professional was appointed to manage the affairs of the company.

Corporate Insolvency Resolution Process:
The Corporate Insolvency Resolution Process for M/s.Kitply Industries Limited commenced on May 01, 2018, with the appointment of an Interim Resolution Professional. The Final Resolution Plan submitted by SREI Multiple Asset Investment Trust was approved by the National Company Law Tribunal, Guwahati, binding all relevant parties to its terms.

Settlement of Litigations:
As part of the approved Final Resolution Plan, a one-time settlement payment was made to settle ongoing litigations against the Corporate Debtor. The amounts allocated for CESTAT cases in Assam were specified, and the Company Secretary confirmed the settlement to the Assistant Commissioner.

Dismissal of Appeals:
Considering the settlement of all dues through a one-time payment, the appeals filed by the appellants were deemed redundant and dismissed as infructuous. The Authorized Representative for the respondent department also agreed that the appeals were no longer relevant, leading to the disposal of the Miscellaneous Application filed by M/s.Kitply Industries Limited.

This comprehensive summary outlines the legal judgment issued by the Appellate Tribunal CESTAT KOLKATA, covering the challenges to the Commissioner's order, the application under the SICA, the Corporate Insolvency Resolution Process, the settlement of litigations, and the subsequent dismissal of appeals due to the settlement of dues.