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2019 (12) TMI 1534 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational creditors - earlier Appellant submitted that the Appellant intends to settle the matter with the Operational Creditors and the Committee of Creditors have not been constituted - HELD THAT - Today, it is informed that the parties have settled the matter and the application for withdrawal has been filed before the Interim Resolution Professional, who asked some clarification from the Adjudicating Authority (National Company Law Tribunal), Kochi Bench, Kochi and the Adjudicating Authority by an order dated 2nd December, 2019 clarified the same. The Tribunal to pass appropriate order in terms of the decision of the Honble Supreme Court in SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. 2019 (1) TMI 1508 - SUPREME COURT taking into consideration the other factors including the claim, if any, made by other parties. Appeal disposed off.
Issues:
Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency Resolution Process against a company. Settlement between parties leading to withdrawal of the application. Clarification sought from the Adjudicating Authority regarding withdrawal. Direction to pass appropriate order in line with the Supreme Court decision. Analysis: The judgment pertains to an appeal filed by one of the Directors against the order of the Adjudicating Authority admitting an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for the initiation of the Corporate Insolvency Resolution Process against a company. Initially, the Appellant expressed intent to settle the matter with the Operational Creditors, and as the Committee of Creditors had not been constituted, time was granted for settlement. Subsequently, it was informed that the parties had reached a settlement, and an application for withdrawal was filed before the Interim Resolution Professional. The Professional sought clarification from the Adjudicating Authority, which was provided through an order clarifying the withdrawal. In light of these developments, the Tribunal directed the Adjudicating Authority to pass an appropriate order in accordance with the decision of the Hon'ble Supreme Court in Swiss Ribbons Pvt. Ltd. & Anr. vs. Union of India & Ors., 2019 SCC Online SC 73, while considering other relevant factors, including any claims made by other parties. Ultimately, the appeal was disposed of with the aforementioned direction, and no costs were awarded in the matter. The judgment underscores the importance of settlement between parties in insolvency proceedings and the need for adherence to legal precedents set by higher courts in such matters.
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