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2021 (1) TMI 343 - Tri - Insolvency and BankruptcyPermission for withdrawal of petition - Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT - Since the Company Petition is not yet admitted and the Parties have settled the issue by way of Settlement, we are inclined to permit the Petitioner to withdraw the instant Company Petition by reserving liberty to the Petitioner to file fresh Company Petition in accordance with law. The petition is hereby disposed of as withdrawn in terms of the settlement dated 08.09.2020 by directing the Respondent to strictly adhere to the terms of settlement, failing which, the Petitioner is at liberty to file a fresh Company Petition in accordance with law.
Issues:
Initiation of Corporate Insolvency Resolution Process under IBC, 2016 for default in payment. Analysis: The judgment pertains to C.P.(IB) No. 131/BB/2020 filed by the Applicant as an Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process due to a default amounting to ?45,25,432 as of 30.08.2019. The case underwent several adjournments for reasons such as notice service, reply filing, and issue settlement. Upon hearing both parties' counsels and examining the relevant provisions of the Code and Rules, it was revealed that the parties had reached a settlement. The settlement agreement included the Corporate Debtor agreeing to pay ?8,67,307 in two installments towards gratuity claim and litigation expenses, leading to the withdrawal of the petition by the Applicant. As the Company Petition was not admitted and the issue was resolved through settlement, the Tribunal allowed the Petitioner to withdraw the petition with the liberty to file a fresh Company Petition if the terms of the settlement were not adhered to by the Respondent. Consequently, C.P. (IB) No. 131/BB/2020 was disposed of as withdrawn, subject to the Respondent's compliance with the settlement terms, failing which the Petitioner could initiate fresh proceedings in accordance with the law.
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