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2020 (1) TMI 37 - Tri - Insolvency and BankruptcyPermission for withdrawal of petition - Maintainability of application - initiation of CIRP - Corporate Debtor defaulted in making repayment - Section 9 of the IBC, 2016 R/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 - the learned PCS for the Petitioner urged the Tribunal that the Petitioner may be permitted to withdraw the instant Company Petition subject to compliance of the terms and conditions as mentioned in the said Joint Memo of Settlement - HELD THAT - Since the issue raised in the Company Petition was resolved between the parties before the case is admitted, we are inclined to permit the Petitioner to withdraw the main Company Petition in the interest of Justice. Petition is disposed of as withdrawn by directing the Respondent to strictly adhere to the terms and conditions as mentioned in the said Joint Memo of Settlement dated 30.08.2019 without any deviation, failing which, the Petitioner will have right to file a fresh Company Petition in accordance with law.
Issues:
Initiation of Corporate Insolvency Resolution Process under Section 9 of IBC due to default in payment. Detailed Analysis: The case involved a petition filed by an Operational Creditor seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Respondent, a Corporate Debtor, for defaulting on a total outstanding amount of INR 67,77,252 since 31.10.2016. The matter was listed for admission on multiple dates, with adjournments granted for various reasons such as completing pleadings and settling issues. Both parties submitted a Joint Memo of Settlement on 30.08.2019, outlining the total claim, interest component, and legal fees payable to the Operational Creditor, amounting to INR 81,27,252. The settlement included details of instruments like Demand Drafts and Cheques issued by the Respondent to settle the outstanding amount. The Tribunal considered the settlement agreement and the compliance of terms and conditions mentioned in the Joint Memo. The Petitioner requested to withdraw the Company Petition based on the settlement terms, which the Respondent agreed to honor. As the issue raised in the petition was resolved between the parties before admission, the Tribunal permitted the withdrawal of the petition in the interest of justice. Consequently, the Tribunal disposed of the petition as withdrawn, directing the Respondent to strictly adhere to the terms of the settlement. Failure to comply would give the Petitioner the right to file a fresh Company Petition as per the law, with no order as to costs issued in the judgment.
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