In the matter of Indounique Flame Limited
- CitationIA 3804(MB)2024 in C.P. (IB)-635(MB)2023
Ratio decidendi
The rule this decision rests on
The withdrawal of a corporate insolvency resolution process under Section 12A of the Insolvency and Bankruptcy Code, 2016 may be allowed where the application is made by the Resolution Professional on the recommendation of the Committee of Creditors, the Committee's approval is given with the requisite voting share (here 100%), and the Financial Creditor has submitted its Form FA indicating that the claim has been amicably settled; on such a showing, the Tribunal may prima facie find that the conditions of Section 12A are satisfied, and consequently allow withdrawal of the CIRP, dispose of the application, and dismiss the underlying Section 7 petition as withdrawn.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH COURT-IV 8. IA 3804(MB)2024 IN C.P. (IB)/635(MB)2023 CORAM: MS. ANU JAGMOHAN SINGH SHRI KISHORE VEMULAPALLI MEMBER (Technical) MEMBER (Judicial) ORDER SHEET OF THE HEARING HELD ON 02.08.2024 Name of the Party: The South Indian Bank Limited Vs Indounique Flame Ltd. Section 7, 12A of Insolvency and Bankruptcy Code, 2016 ORDER 1. Adv. Viraj Rajani i/b M/s AVP Partners, Ld. Counsel for the Applicant/ Resolution Professional and Adv. Ashish Pyasi a/w Adv. Avinash Khanolkar and Adv. Aditya Krishan for the suspended Board of Directors are present through physical mode. IA-3804/2024 2. This is an Application filed under Section 12A of the IBC, 2016 by the RP, under the recommendation of the Committee of Creditors (CoC), seeking withdrawal of the CIRP against the Corporate Debtor. 3. This Tribunal vide an order dated 11.01.2024 the present Petition bearing (C.P. (IB)/635(MB)2023) u/s 7 was admitted and CIRP was commenced, moratorium was declared an Interim Resolution Professional (IRP) was appointed. 4. In pursuant to the above admission Order, the appointed IRP made public announcement in Form A along with newspaper publication inviting claims against the Corporate Debtor.
The CoC was constituted and first CoC meeting was held on 22.02.2024. 5. However, during the CIRP an agreement has been executed between the parties as they amicably settled the claim and the Financial Creditor submitted Form FA dated 15.07.2024 to the RP. In the 5th CoC meeting held on 05.07.2024, the members of CoC have accepted the Form FA and approved withdrawal of CIRP with 100% voting, minutes of the meeting is attached with the Application. The CoC has resolved to file 12A Application for withdrawal of the CIRP against the Corporate Debtor and authorised the RP to file the necessary Application with the Tribunal. 6. In view of the afore-said submission(s) made and considering the totality of the circumstances, prima-facie it appears that all the requisite conditions of the Section 12A of IBC have been fulfilled, as affirmed by the Resolution Professional. Accordingly, this Bench allows the withdrawal of the CIRP against the Corporate Debtor. 7. The Corporate Debtor is free from the rigours 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. 8. Accordingly, IA-3804/2024 is allowed and disposed of. C.P. (IB)/635(MB)2023 is dismissed as withdrawn. File to be consigned to records.
Sd/- Sd/- ANU JAGMOHAN SINGH KISHORE VEMULAPALLI Member (Technical) Member (Judicial) /Dubey/
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