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2021 (11) TMI 950 - Tri - Insolvency and BankruptcySeeking revival/restoration/re-initiation of Corporate Insolvency Resolution Process (CIRP) already admitted - seeking to reset the time line or give fresh start to the CIR process under Insolvency Bankruptcy Code, 2016 - HELD THAT - This adjudicating authority is convinced that there is breach of terms of settlement dated 02.12.2019. Hence, in terms of the order dated 06.12.2019 and order dated 15.03.2021 of the Hon'ble NCLAT, this Adjudicating Authority is inclined to revive/re-store the Corporate Insolvency Process of Corporate Debtor/Respondent M/s. Jagtar Singh Sons Hydraulics Private Limited and Interim Resolution Professional, Mr. Piyush Moona is directed to resume his duties as per direction of this adjudicating authority in the order dated 03.09.2019. Admission order against the corporate debtor dated 03.09.2019 is hereby, revived/restored - Application allowed.
Issues:
Revival/restoration/re-initiation of Corporate Insolvency Resolution Process (CIRP) under Insolvency & Bankruptcy Code, 2016 (IBC, 2016) based on breach of settlement terms and default on post-dated cheques. Analysis: The Applicants/Financial Creditor filed an application for revival of CIRP against the Corporate Debtor, as per the settlement deed dated 02.12.2019, following an earlier admission and subsequent setting aside of the CIRP initiation. The Corporate Debtor failed to honor the settlement terms, leading to the revival application. The Hon'ble Appellate Authority provided multiple opportunities to the Corporate Debtor to comply with the settlement terms, setting a payment schedule. However, no further payments were made by the Corporate Debtor, prompting the revival request by the Financial Creditor. The Hon'ble NCLAT's order dated 06.12.2019 emphasized that breach of settlement terms or default on post-dated cheques could lead to the revival of the CIRP. The Adjudicating Authority, considering the breach of settlement terms and the subsequent failure to adhere to the payment schedule, decided to revive the CIRP against the Corporate Debtor. The Interim Resolution Professional was directed to resume duties as per the original order dated 03.09.2019, effectively restoring the CIRP process against the Corporate Debtor. The Adjudicating Authority officially revived and restored the admission order against the Corporate Debtor dated 03.09.2019, granting relief to the Financial Creditor. The Financial Creditor was instructed to communicate this order to the Resolution Professional and the Corporate Debtor promptly. Additionally, the Registry was directed to inform the Registrar of Companies for updating the Corporate Debtor's status on the MCA-21 site. The order was pronounced through video conferencing, ensuring the official revival of the CIRP against the Corporate Debtor.
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