7 Star Empire Limited vs Omkara Assets Reconstruction Private ...
- CitationCompany Appeal (AT) (Insolvency) No. 414 of 2025
Ratio decidendi
The rule this decision rests on
The order rests on a single practical line of reasoning, and there is no rule of general application stated beyond the procedure directed in this case. The Tribunal's conclusion that, where the parties have settled and the amount has been paid, the proper course is a Section 12A application before the Adjudicating Authority through the IRP (on Form FA), with an accompanying public announcement because the proceedings are in rem, and that no steps other than publication are to be taken until the Section 12A application is decided, is an application of the procedural framework for withdrawal of the insolvency application, not an independent statement of law. The order itself describes the matter as turning on the settlement and the parties' steps to complete formalities.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Miroliya Hasmukhbhai Rajabhai, (Suspended Director 7 Star Empire Ltd.) & Ors. ...Appellants
Versus
Omkara Assets Reconstruction Pvt. Ltd. & Anr. ...Respondents
Present: For Appellants: Mr. Mohd. Umar, Mr. Kanv Madnani, Advocates. For Respondents: Ms. Kriti Kalyani, Advocate.
ORDER
(Hybrid Mode)
18.07.2025: Heard counsel for the parties. This appeal has been filed
against the order passed by the Adjudicating Authority admitting Section 7
application filed by Omkara Assets Reconstruction Pvt. Ltd. by order dated
06.03.2024. When the Appeal was taken, Appellant made a submission that
Appellant is taking steps to settle the matter. On 10.07.2025, following order
was passed:
"ORDER (Hybrid Mode)
10.07.2025: Counsel for the Appellant submits that the last tranche of amount has already been paid. He prays that the Appeal be taken up next week to complete the necessary formalities.
2. As prayed, list the Appeal on 18.07.2025. Interim order to continue."
2 2. Interim order was passed on 07.03.2025, which is to the following
effect:
"In event no publication has been made in pursuance of the impugned order, it will not be made till 10.03.2025."
3. Learned counsel for the Appellant as well as learned counsel for the
Financial Creditor submits that settlement has already entered between the
parties and all amount has been paid.
4. In view of the aforesaid, we are of the view that the course open for the
parties is to file 12A application before the Adjudicating Authority through
IRP by giving Form FA. IRP has to issue public announcement so that creditor
may come to know of the CIRP because proceedings are now in rem. Financial
Creditor may file 12A application within two weeks from today. No steps shall
be taken in the CIRP except issuance of publication till an order is passed on
12A application. Appeal is disposed of as above.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Archana/nn
Company Appeal (AT) (Ins.) No.414 of 2025
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