In the matter of Jvr Forgings Limited

National Company Law Tribunal14 February 2024

CitationIA(I.B.C)/262(CH)2024

Ratio decidendi

The rule this decision rests on

The Adjudicating Authority may permit withdrawal of a petition admitted under Section 7 of the Insolvency and Bankruptcy Code, 2016, where the withdrawal is approved by the Committee of Creditors with 100% voting share and is supported by a settlement agreement between the parties, and on such withdrawal the moratorium under Section 14 ceases, the corporate debtor is released from the corporate insolvency resolution process, the Resolution Professional is discharged, and the Board of Directors is restored. An application for approval of a resolution plan may be allowed to be withdrawn, and the pending application for approval of the resolution plan rendered infructuous and disposed of, where the Committee of Creditors has approved the withdrawal with 100% voting share on the basis of a settlement agreement, and the settlement amount exceeds the size of the resolution plan.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE NATIONAL COMPANY LAW TRIBUNALCHANDIGARH (COURT – II)(Through Hybrid Mode)Item No. 121IA No. 391/2024IA(I.B.C)/262(CH)2024AndCOMP.APPL.(IBC)/487(CH)2019InC.P. (IB)/36(CH)2018(Admitted)IN THE MATTER OF:Allahabad Bank … Petitioner-Financial CreditorVersusJVR Forgings Ltd. … Respondent-Corporate DebtorUnder Section: 7, 12A, 60(5), IBC 2016Order delivered on 14.02.2024CORAM:SHRI. L. N. GUPTA, SHRI. HARNAM SINGH THAKUR,HON’BLE MEMBER (T) HON’BLE MEMBER (J)PRESENT:For the Petitioner : Mr. Manish Jain, AdvocateFor the Suspended : Mr. Anand Chhibbar, Senior Advocate with Mr.Board of Director Shikhar Sarin, Advocate & Ms. Swati Vashisht,: PCAfor the Applicant-RP : Mr. G.S. Sarin, PCSin IA Nos. 262/2024& CA No.487/2019.For the SRA. : Dr. Rajansh Thukral, Advocate

ORDER Item taken up on urgent mentioning before dealing with Item No.101 to 108. IA No. 391/2024 This IA No. 391/2024 has been filed by RP with the following prayer:- i. Allow the present application and approve the withdrawal of the application for approval of the Resolution Plan (CA No.487/2019) February 14, 2024 Mamta pending before this Adjudicating Authority as the same being approved by COC with 100% voting share in 17th COC meeting held on 09.02.2024, on the grounds of settlement agreement duly executed between the Phoenix Arc Pvt. Ltd. And the Director (power suspended) of the Corporate Debtor and for withdrawal of resolution plan application;

On being asked for the logic of withdrawal, the Ld. Authorized Representative representing RP indicated that the settlement amount of (Rs.60 crores) is more than the size of the Resolution Plan. In the light of the averments made in the application and approval granted by the CoC with 100% voting share (17th meeting dated 09.02.2024 in Agenda Item No.17.04), IA No.391/2024 is allowed and disposed of accordingly.

IA(I.B.C)/262(CH)2024 This application has been filed by RP with the following prayers:- i. Allow the present application and approve the withdrawal of the petition bearing CP(IB) No.36/Chd/Pb/2018 under Section 7 of the Code admitted on 12.09.2018, on the grounds of settlement agreement duly executed between the parties and approval granted by the CoC with 100% voting share for withdrawal of CIRP application; ii. Resolution Professional may kindly be discharged from the duties; iii. Suspended Board for the Corporate Debtor may kindly be restored;

February 14, 2024 Mamta iv. Pass any such order/order(s) as may be deemed fit and proper in the facts and circumstances of the instant case. In this application, the RP referred to Form FA on page No. 228 (Annexure-25) which is duly signed by the petitioner i.e. Phoenix Arc Pvt. Ltd. He further submitted that there is no problem in payment of the fee of RP. He also referred to the Resolution of the 10th CoC Meeting dated 10.01.2024, item No.16.04 on page No.233, which was passed by the COC with 100% voting. Thus, CoC has approved the Resolution for withdrawal of the main petition with 100% voting which is annexed at page No. 244 of the present application. In view of this, the present application bearing IA No.262/2024 is allowed and the petition being CP(IB) No.36/Chd/Pb/2018 is dismissed as withdrawn. As a consequence, moratorium declared under Section 14 of the Code comes to an end and the corporate debtor is released from the rigours of the CIRP. Henceforth, the RP is discharged and the Board of Directors is restored to its original position. The files may be consigned to the record room. COMP.APPL.(IBC)/487(CH)2019 In view of the order passed in IA No.391/2024, CA No.487/2019 is rendered infructuous and disposed of accordingly.

Sd/- Sd/- (L. N. GUPTA) (HARNAM SINGH THAKUR) HON’BLE MEMBER (T) HON’BLE MEMBER (J)

February 14, 2024 Mamta

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