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2019 (7) TMI 1423 - Tri - Insolvency and BankruptcyClosure of CIRP proceedings against Corporate Debtor - cessation of order of moratorium - HELD THAT - In terms of Inherent powers envisaged under Rule 11 of NCLT Rules, 2016 and in view of the consent terms between the parties and non-formation of CoC, this Adjudicating Authority deems it just proper to Close the CIRP proceedings against the Corporate Debtor. The fees of the IRP shall be paid by the corporate debtor as per the terms agreed between the parties. The CIRP proceedings against the Corporate Debtor i.e., Ranga Particles Board Industries Limited shall stand closed and the order of moratorium shall stand ceased.
Issues:
1. Application to close CIRP proceedings and cease moratorium. Analysis: The judgment pertains to an application filed under rule 11 of NCLT Rules, 2016 seeking to close the Corporate Insolvency Resolution Process (CIRP) proceedings initiated against the Corporate Debtor and to cease the order of moratorium. The Adjudicating Authority previously admitted the main Petition and commenced the CIRP against the Corporate Debtor. However, it is noted that the outstanding dues of the Operational Creditor have been settled amicably, and the 1st meeting of the Committee of Creditors (CoC) has not taken place yet. The consent terms between the parties state that upon receipt of the settlement amount from the Corporate Debtor, the Operational Creditor shall have no further claims against the Corporate Debtor in the ongoing proceedings. The Interim Resolution Professional confirmed that the CoC has not been formed, and no meetings have been held. Referring to the Order of the Hon'ble Supreme Court in the matter of Swiss Ribbons (P.) Ltd. v. Union of India, the Adjudicating Authority emphasized that parties can approach the NCLT directly in the absence of a constituted CoC. The Authority, invoking its inherent powers under Rule 11 of NCLT Rules, 2016, decided to close the CIRP proceedings against the Corporate Debtor due to the consent terms between the parties and the non-formation of CoC. Furthermore, the judgment stipulates that the fees of the Interim Resolution Professional shall be paid by the Corporate Debtor as per the agreed terms. Consequently, the CIRP proceedings against the Corporate Debtor are closed, and the order of moratorium is ceased. The Application and the main Corporate Petition are also closed as a result of this decision.
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