Akasa Finance Limited vs Mr. Atul Kumar Jain & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 1337 of 2022
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority's approval of a settlement between the Corporate Debtor and the petitioning creditor under Section 12A of the Insolvency and Bankruptcy Code, which results in closure of the CIRP, is not a matter in which the Appellate Tribunal will interfere at the instance of a financial creditor whose claim has not been verified and who is not party to that settlement, where the settlement itself is not challenged on the appellant's behalf. The withdrawal of the CIRP on the basis of such a settlement does not bar a financial creditor from pursuing its own independent remedies in law against the Corporate Debtor for its dues.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Akasa Finance Ltd. ...Appellant
Versus
Atul Kumar Jain & Anr. ...Respondents
Present: For Appellant: Mr. Rajendra Beniwal, Mr. Aman Singhania, Advocates For Respondent:
ORDER
11.11.2022: Heard Learned Counsel for the Appellant.
2. This Appeal has been filed against the Order dated 22.08.2022. By
which Order, I.A./736/2022 filed by the IRP under Section 12A has been
allowed and 'Corporate Insolvency Resolution Process' (CIRP) has been closed.
The Appellant-Financial Creditor has also filed objection to the application.
3. It is submitted by Learned Counsel for the Appellant that for quite long
period, the 'Committee of Creditors' (CoC) was not constituted hence the
claims of the Financial Creditor were not verified. He submits that High
Courts has also directed IRP to consider the claims of other Financial
Creditors.
4. Be that as it may, the Adjudicating Authority has noted the Orders
dated 006.07.2020 and 13.01.2022 of High Court and that Operational
Creditor has received confirmation from IRP regarding the settlement between
the Petitioner and Respondent. When the Financial Creditor and the
Corporate Debtor has settled and Adjudicating Authority has allowed Section -2-
12-A application, we see no reason to entertain this Appeal at the instance of
the Appellant. The Appellant-Financial Creditor is at liberty to seek his own
remedies against the Corporate Debtor for its dues. We make it clear that
withdrawal of the CIRP in view of the Settlement shall not come in the way of
present Appellant to seek remedy in law.
With these observations, the Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical)
Basant/nn Company Appeal (AT) (Insolvency) No. 1337/2022
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