In the matter of Bhaskar Foods Pvt. Ltd.
- CitationIA-240(MP)2023 in TP 259 of 2019 in CP(IB) 203 of 2018
Ratio decidendi
The rule this decision rests on
The Tribunal, sitting under Section 12A of the Insolvency and Bankruptcy Code, 2016, may permit withdrawal of a corporate insolvency resolution process after admission where the Committee of Creditors has approved the withdrawal by one hundred per cent of voting share and the withdrawal is supported by settlement and payment to the members of the Committee; upon such permission the corporate insolvency resolution process stands terminated, the corporate debtor is released from the process, and control is to be restored to its suspended management.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE NATIONAL COMPANY LAW TRIBUNAL INDORE BENCH COURT NO. 1 ITEM No.4 IA/240(MP)2023 in TP 259 of 2019 [CP(IB) 203 of 2018] Proceedings under Section 12A of IBC, 2016 r.w. Regulation 30A of IBBI Regulations, 2016 IN THE MATTER OF: CA Sambhu Lal Agarwal, RP of Bhaskar Foods Pvt Ltd Oriental Coal Corp. & Anr ........Applicants Order delivered on 17/08/2023 Coram: Mahendra Khandelwal, Hon’ble Member(J) Kaushalendra Kumar Singh, Hon’ble Member(T) PRESENT: For the Applicant : Ld. Adv. Mr. Rajat Lohia (Online) For the Respondent/Suspended Management : Ld. Adv. Mr. Jatin Sehgal (Online) ORDER IA/240(MP)2023 This application is filed by the RP under Section 12A of the IBC, 2016 r.w. Regulation 30A of IBBI (IRP for CP) Regulations, 2016 seeking permission for withdrawal of continuing CIRP of the Corporate Debtor viz., Bhaskar Foods Pvt Ltd. We have heard the learned counsel for the RP. Learned counsel for the RP submits that vide order dated 25.08.2022, an application under Section 9 of the IBC, 2016 was admitted for initiation of the CIRP against the Corporate Debtor viz., Bhaskar Foods Pvt Ltd. However, during the course of the CIRP, the CoC members, by 100% votes, have decided to withdraw the CIRP proceeding against the Corporate Debtor. It is also submitted that the CoC consists of two members viz., M/s Agarwal Coal Depot & M/s Oriental Coal Corporation. The Oriental Coal Corporation was the original Applicant of Section 9 Petition. He also submits that the following settlement with these two Operational Creditors, who are the members of the CoC, the payments have been made to them. After considering the facts and the submissions made by the learned counsel for the RP, we allow the application. The CIRP, accordingly, is terminated. The Corporate Debtor is free from the rigours of the CIRP. The control over the Corporate Debtor should be handed over by the RP to the Suspended Management of the Corporate Debtor. With these observations, IA/240(MP)2023 stands allowed. The CIRP initiated in the main petition i.e., TP 259 of 2019 [CP(IB) 203 of 2018] stands closed. Any pending applications relating to this main petition shall be treated as infructuous and disposed of. Sd/- Sd/- KAUSHALENDRA KUMAR SINGH MAHENDRA KHANDELWAL MEMBER (TECHNICAL) MEMBER (JUDICIAL) A. Bhadauria
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free