In the matter of P Sarkar Fabricators Private Limited
- CitationIA(I.B.C)-404(KB)2022 in C.P. (IB)-745(KB)2020
Ratio decidendi
The rule this decision rests on
Where a corporate insolvency resolution process has been initiated under section 9 of the Insolvency and Bankruptcy Code, 2016, and no committee of creditors has yet been constituted, the Tribunal may, on the basis of a settlement reached between the parties, recall the initiation order and close the CIRP under section 12A of the Code, treating the settlement as the statutory basis for withdrawal of the application.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ATTENDANCE-CUM-ORDER SHEET OF THE HEARING ON 09THMAY, 2022, 10:30 A.M MACWIRETRADERSLLP IN THE MATTER OF VS PSARKARFABRICATORSPRIVATELIMITED UNDER SECTION IBCUNDERSEC9
Appearances (via video conferencing/Physical) Ms.Swapna Chaubey,Advocate ] For theOperationalCreditor Ms.Shreya Chaudhary, Advocate ] Mr. Nirmalya Dasgupta, Advocate ] Mr. Jitendra Patnaik, Advocate ] OR DER 1. Ld. Counsel fortheOperational Creditorpresent. 2. I.A. 404/KB/2022: This is an application filed by a member of the suspended board of Directors seeking recall of the order dated 26/04/2022 by which Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor. This matter was mentioned by the Ld. Counsel appearing for the applicant herein on 06/05/2022 whereupon the applicant who is seeking withdrawal of thepresent petition was directed to deposit a sum of Rs.1,00,000/- (Rupees One Lakh Only) with the PrimeMinister’s National ReliefFund. The same was complied with onthe sameday vide bank reference ID 221268459810 and bank transaction ID: WHDF1127687113; Transaction Date/Time: 06.05.2022.
3. In viewof thefact that.
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4. In view of the settlement arrived at between the parties, and that no Committee of Creditors (CoC) has been constituted so far, this is an application that should be considered in terms ofsection 12AoftheCode.
5. Therefore, thefollowing orders are passed:
(a) The order dated 26/04/2022 shall stand recalled and the CIRP initiated against the Corporate Debtorshall stand closed. (b) TheCorporate Debtor is free from therigours oftheCode; (c) The suspended board of directors of the Corporate Debtor is restored to its original position; (d) The IRP is hereby directed to hand over the possession of the documents and assets of the Corporate Debtor back to the restored board of directors under proper acknowledgement; (e) The IRP shall stand discharged of its responsibilities subject to procedural compliances likeintimation toRegistrar ofCompanies and IBBI.
6. With these directions, IA 404/KB/2022 stands allowed. Consequently, C.P. No. 745/KB/2020 shallstanddismissed aswithdrawn.
7. Filebe consigned totherecords.
Balraj Joshi RajasekharV.K. Member (Technical) Member(Judicial)
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