2023 (11) TMI 528 - AT - Insolvency and Bankruptcy

Admission of section 9 application - HELD THAT - Learned Counsel for the Appellant submits that he has already filed an application bringing on record the proof of the payment to the Operational Creditor. Learned Counsel for the Operational Creditor submits that he has already received the entire payment. There are no reason in continuing the Corporate Insolvency Resolution Process any further - The Appeal is disposed of, impugned order is set aside and CIRP is closed.

Summary

Issues involved:
The issues involved in the judgment are the admission of Section 9 Application, settlement between the Corporate Debtor and Operational Creditor, proof of payment to the Operational Creditor, and non-payment of directed amount to the IRP.

Admission of Section 9 Application:
The Appeal was filed against the Order dated 12.10.2023 where the Adjudicating Authority admitted the Section 9 Application. An interim Order was passed on 18.10.2023, where the Suspended Director of the Corporate Debtor challenged the admission. The parties had reached a settlement on the amount to be paid by the Appellant to the Operational Creditor. The Appeal was directed to be listed on 10.11.2023, and the order dated 12.10.2023 was stayed. Eventually, the Appeal was disposed of, the impugned order was set aside, and the Corporate Insolvency Resolution Process (CIRP) was closed.

Settlement between Corporate Debtor and Operational Creditor:
Both parties had finalized the amount to be paid by the Corporate Debtor to the Operational Creditor, and the Operational Creditor agreed to accept the amount to resolve the controversy. The Appellant's counsel assured that the appropriate amount would be transmitted to the Operational Creditor within two weeks. Subsequently, the Operational Creditor confirmed receiving the entire payment. This settlement led to the decision to close the CIRP as there was no reason to continue the process further.

Proof of Payment to Operational Creditor:
The Appellant's counsel had filed an application providing proof of payment to the Operational Creditor. The Operational Creditor's counsel confirmed the receipt of the entire payment. This confirmation further supported the decision to conclude the CIRP.

Non-payment of Directed Amount to IRP:
The IRP informed that a payment of Rs. 2 Lakh directed by the Adjudicating Authority had not been made. It was directed that the Operational Creditor should make this payment to the IRP within three weeks via a Bank Draft to cover fees and expenses. Failure to make this payment could result in consequences as directed by the Adjudicating Authority.