2025 (1) TMI 1325 - SCH - IBC

Application for withdrawal of the Company Petition - settlement agreement and Form FA were obtained under force coercion and threat - HELD THAT - The present appeals are disposed off without adjudication on merits in view of the appellant s stand and claim based upon the settlement agreement dated 02.01.2025. Form FA dated 02.01.2025 being the application for withdrawal of the Company Petition signed on behalf of respondent No. 1 M/s. K. Computers addressed to the Interim Resolution Professional is placed on record by the appellant Kalyan Muppaneni the erstwhile Director of the corporate debtor. Appeal disposed off.

Summary

The Supreme Court, comprising Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and K.V. Viswanathan, addressed appeals related to a settlement agreement dated 02.01.2025. The appellant, Kalyan Muppaneni, presented Form FA, an application for withdrawal of a Company Petition, signed by respondent No. 1, M/s. K. Computers, to the Interim Resolution Professional (IRP).The Court decided to dispose of the appeals without adjudicating on the merits due to the appellant's reliance on the settlement agreement. It allowed the IRP to proceed according to law and potentially file an application under Section 12A of the Insolvency and Bankruptcy Code, 2016 (IBC).Respondent No. 1 claimed the settlement and Form FA were obtained through "force, coercion and threat," but the Court did not address these issues, leaving them to be resolved under IBC provisions. The Court clarified that the National Company Law Appellate Tribunal's judgment would not hinder the IRP or adjudicating authority from examining Form FA or deciding whether to drop proceedings under Section 12A of the IBC.The Court allowed the appellant to seek adjournment or stay from the adjudicating authority and disposed of the appeals and any pending applications.