In the matter of Gaurang Properties Private Limited
- CitationIA-4936-2023 in C.P.(IB)-1217(MB)-2022
Ratio decidendi
The rule this decision rests on
The Tribunal's reasoning rests on the following: where an application is made under Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A(1)(a) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, for withdrawal of a corporate insolvency resolution process before the constitution of the Committee of Creditors, the Tribunal may permit withdrawal where, on prima facie verification of the documents, the conditions of Section 12A are shown to be satisfied, as affirmed by the Interim Resolution Professional and with the fees and expenses of the Interim Resolution Professional paid in full. Upon such withdrawal, the Tribunal may close the corporate insolvency resolution process, direct the Resolution Professional to hand over the financial and other records to the reinstated Board, and direct intimation of the withdrawal to the Registrar of Companies. Any settlement arrangement that provides for revival of the petition upon its breach does not bar the financial creditor from seeking revival, the liberty being expressly reserved in the order.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
O R D E R
1. Mr. Kunal Kanungo a/w Ms. Tanushree Sogani and Mr. Atishay Jain, Ld. Counsel for the Applicant in IA-4936/2023 present. Mr. Aashdin Chivalwala a/w Mr. Rohan Vasa i/b Argus Partners, Ld. Counsel for the Financial Creditor present. Tinaz Kapadia i/b Rajesh Kinerkar, Ld. Counsel for the Corporate Debtor present.
2. IA-4936/2023: This is an Application filed by the Interim Resolution Professional (IRP) under Section 12A of the IBC, 2016 r/w Regulation 30A(1)(a) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor - Gaurang Properties Private Limited.
3. This Tribunal vide an order dated 08.09.2023, the Petition bearing No.: CP(IB)-1217/2022) filed u/s 7 by the Financial Creditor was admitted and contd….2 30.10.2023 / pvs
IA-4936/2023 in C.P.(IB)/1217(MB)/2022 : 2 :
CIRP of the Corporate Debtor was commenced, moratorium was declared and Interim Resolution Professional (IRP) was appointed.
4. In pursuant to the above admission Order, the appointed IRP made public announcement in Form A through newspaper publication on 11.09.2023 inviting claims against the Corporate Debtor. The IRP received various claims and was in the process of constituting Committee of Creditors (CoC). Meanwhile, the IRP informed by the original Petitioner through email dated 28.09.2023 that they have amicably settled the matter with the suspended board of director of the Corporate Debtor. On 30.09.2023, the Financial Creditor forwarded the OTS Sanction Letter dated 28.09.2023 duly accepted by the Corporate Debtor along with Form FA duly signed by the Petitioner. As the Petitioner submitted the Form FA before the constitution of the CoC and recommended for the withdrawal of the CIRP of the Corporate Debtor, the IRP filed this Application.
5. In view of the submission made by the Applicant and on verification of the documents, prima-facie it appears that all the requisite conditions of the Section 12A of IBC have been fulfilled, as affirmed by the IRP. The Counsel also confirms that the IRP’s fees and expenses have been fully paid. Accordingly, this Bench allows the withdrawal of the Petition and closure of the CIRP against the Corporate Debtor.
6. The Corporate Debtor is free from the rigour of CIRP and the erstwhile management is being reinstated to the Board. The RP is to handover all financial and other records to the reinstated Board of the Company. RoC to be intimated the withdrawal of the CIRP and normal function of the Company. contd….3 30.10.2023 / pvs
IA-4936/2023 in C.P.(IB)/1217(MB)/2022 : 3 :
7. In view of the para 20 of the settlement, if there is any breach of settlement deed, the party is at liberty to seek revival of the Petition.
8. With the foregoing, IA-4936/2023 is allowed and disposed of. CP(IB)- 1217(MB)/2022 is dismissed as withdrawn. File to be consigned to records.
Sd/- Sd/- ANU JAGMOHAN SINGH KISHORE VEMULAPALLI Member (Technical) Member (Judicial)
30.10.2023 / pvs
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