A.R. Raamesh vs Swaminathan Venkatraman, Irp & Anr

A. R. Raamesh ...Appellant

Vs

Swaminathan Venkatraman, IRP & Anr. ....Respondents

Present: For Appellant: Mr. P. Venkatesam, Advocate. For Respondents: Mr. Siddharth Panda, Advocate for R-1. Mr. S. K. Sarkar, Advocate for R-2.

ORDER

29.01.2020: Heard learned counsel for the parties. It emerges from the

impugned order dated 11th December, 2019 that after admission of the

application of Respondent Operational Creditor under Section 9 of the Insolvency

and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code'), the Interim

Resolution Professional had been appointed. However, it is admitted by learned

counsel for the Respondent - Interim Resolution Professional that the

publication of announcement has not been made nor Committee of Creditors

had been constituted when the impugned order came to be passed. It is further

submitted that even as of now the Committee of Creditors has not been

constituted.

2. In the given circumstances, once it was represented before the

Adjudicating Authority (National Company Law Tribunal), Division Bench - I,

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Chennai that the matter has been amicably settled between the Operational

Creditor and the Corporate Debtor prior to constitution of Committee of

Creditors, the Adjudicating Authority should have taken recourse to Regulation

30A(1)(a) governing withdrawal of application falling within the ambit of Section

12A of the I&B Code.

3. It appears that the Learned Adjudicating Authority, in utter disregard to

the provisions of the Law and probably under misconception that such recourse

was impermissible because the resolution process had been initiated, declined

to entertain the prayer for withdrawal of application in terms of the Settlement

and on the contrary asked for making public announcement for inviting claims.

This view cannot be supported.

4. However, it appears that the Appellant had not approached the

Adjudicating Authority in the prescribed format in terms of Regulation 30A(1)(a).

5. Having regard to the facts and circumstances of the case, we dispose of

this appeal with direction to the Appellant to approach the Adjudicating

Authority with application for withdrawal in terms of settlement in the prescribed

format falling across the ambit of Regulation 30A(1)(a). This may be done within

two weeks.

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5. We make it clear that in the event of such application not being filed before

the Adjudicating Authority, the Corporate Insolvency Resolution Process shall be

carried forward.

6. The appeal is disposed of with aforesaid observations and directions.

[Justice Bansi Lal Bhat] Member (Judicial)

[V. P. Singh] Member (Technical)

[Shreesha Merla] Member (Technical) am/nn

Company Appeal (AT) (Insolvency) No. 06 of 2020