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2020 (9) TMI 376 - AT - Insolvency and BankruptcyRequest for withdrawal of original Application filed under Section 9 of IBC - HELD THAT - Considering Judgement of the Hon ble Supreme Court in the matter of SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. 2019 (1) TMI 1508 - SUPREME COURT , in exercise of powers under Rule 11 of National Company Law Appellate Tribunal Rules, 2016, we accept the request made by the Counsel for Appellant and Counsel for Respondent No.1. The request of Respondent No.1 is that the Respondent No.1 wants to withdraw the original Application filed under Section 9 of IBC, in view of the settlement reached by the parties. Respondent No.1 is permitted to withdraw the original Application filed before the Adjudicating Authority - Appeal allowed.
Issues:
Operational Creditor's Application under Section 9 of IBC admitted by Adjudicating Authority - Appeal filed against admission - Settlement reached between parties - Request to withdraw original Application - Consideration of settlement in light of Supreme Court judgment - Decision on Appeal and Impugned Order - Actions by IRP/RP - Release of Corporate Debtor - CIRP costs and fees. Analysis: The judgment pertains to an appeal before the National Company Law Appellate Tribunal in response to the admission of an Operational Creditor's Application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The appeal was filed by a partner of the LLP, which was the Corporate Debtor. Subsequently, it was revealed that the Operational Creditor and the Appellant had settled their dispute, with the Corporate Debtor making payment towards the dues of the Operational Creditor. Both parties expressed their intention to withdraw the original Application in light of the settlement. The Tribunal considered the settlement in accordance with the powers vested under Rule 11 of the National Company Law Appellate Tribunal Rules, 2016, and accepted the request to withdraw the original Application based on the settlement reached by the parties. Citing the judgment of the Supreme Court in the case of "Swiss Ribbons Pvt. Ltd. & Anr. vs. Union of India & Ors.", the Tribunal allowed the Appeal, quashed the Impugned Order, and permitted the withdrawal of the original Application by the Respondent No.1. Furthermore, the Tribunal nullified and set aside the actions taken by the Interim Resolution Professional/Resolution Professional (IRP/RP) in consequence of the Impugned Order. The Corporate Debtor was released from the obligations under the law and allowed to function independently through its Board of Directors. The IRP/RP was directed to hand back the records and management of the Corporate Debtor to the Board of Directors. Additionally, the IRP/RP was instructed to provide details regarding Corporate Insolvency Resolution Process (CIRP) costs and balance fees to the Adjudicating Authority for approval. The Adjudicating Authority was empowered to consider and approve reasonable CIRP costs and fees, directing the Corporate Debtor to make the necessary payments within a specified time frame. Failure to comply would allow the parties to seek a recall of the Tribunal's order. In conclusion, the Appeal was disposed of in accordance with the decisions outlined, effectively resolving the issues raised in the matter before the National Company Law Appellate Tribunal.
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