In the matter of PI Data Centers Private Limited
- CitationIA(IBC)/32/2025 in CP(IB)71/9/AMR/2020
Ratio decidendi
The rule this decision rests on
A Section 12A withdrawal application may be entertained and allowed on the basis of a settlement agreement and Form FA filed by the applicant, where the Tribunal, having regard to the Supreme Court's direction that the question of coercion be decided under the IBC, does not find on the materials before it that the agreement or Form FA was procured by force, coercion or threat, and where the Respondent has not placed before the Tribunal any FIR or complaint to the police in respect of such allegations. An Interim Resolution Professional, as a Court Officer, has the right to file an application under Section 12A of the IBC seeking withdrawal of the CIRP, and may do so on the strength of a settlement agreement and the operational creditor's Form FA, together with confirmation that all fees and costs have been received and no further dues remain.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE NATIONAL COMPANY LAW TRIBUNAL AMARAVATI BENCH (Through Hybrid Mode) Item No.5 IA(IBC)/32/2025 IN CP(IB)NO.71/9/AMR/2020 (CP Admitted 04.03.2022) IN THE MATTER OF: K Computers ..Operational Creditor Versus PiD ata Centers Pvt Ltd ...Corporate Debtor Under Section:9, 12A of IBC, 2016 Order delivered on 28.03.2025 CORAM: SHRI UMESH KUMAR SHUKLA SHRI KISHORE VEMULAPALLI HON'BLE MEMBER (TECHNICAL) HON'BLE MEMBER (JUDICIAL) : APANY RRESENT: CP rt he 0C : Mr. Y. Suryanarayna, Adv. Bot the CD : Mr. S. Ravi, Sr. Adv. PRESENT: SIBC)/32/2025: Ror the Applicant : Mr. T.K. Bhaskar & Ms. KA nnapurna Reddy, Advocates For R1 : Mr. S. Ravi &% Mr. PH Arvind Pandian, Sr.Advocates along with Mr.P Jhabakh, Mr. Abhishek Raman, Mr. Jerin Ashar Sojan, Advocates For R2 : Mr. Y. Suryanarayana, Adv. ORDER IA(TBC)/32/2025: 1. This application has been filed by the Applicant/IRP under Section 12A of IBC, 2016 for withdrawal of the CIRP proceedings against the CD i.e., Pi Data Centers Private Limited, on the ground that both the Parties entered into a Settlement Agreement dated 02.01.2025. By way of terms and conditions of the said Agreement, he filed the instant applicationu/s 12A of IBC, 2016, and the 0C given Form-FA for permitting the IRP to file the application for withdrawal of the CIRP proceedings in the main Petition bearing CP(B)/71/9/AMR/2020.
Jahnav &RSN
//2// 2. At the stage of withdrawal of the Petition, one Mr. Kalyan Muppaneni, erstwhile Director of the CD approached the Hon'ble Supreme Court. The Honble Supreme Court after hearing both the Parties held that: "It is open to the Interim Resolution Professional to proceed in accordance with law and, if deemed appropriate, fle an application under Section 12A of the Insolvency and Bankruptcy Code, 2016. It is the stance of respondent No. 1, M/s. K. Computers, that the aforesaid settlement agreement and Form FA were obtained under force, coercion and threat. We are not examining and answering the said issues, as these are aspects to be adjudicated and decided in terms of the provisions of the IBC. Al pleas and contentions of the parties on the aforesaid aspects are ATORe, left open. We, however, clarify that the imnpugned judgment passed by the National Company Law Appellate Tribunal will not come in the way of the adjudicating authority/Interim Resolution Professional in examining the subject Form FA and also deciding as to whether or not the proceedings should be dropped in terms of Section 12A of the IBC.
3 Pursuant to the aforesaid Judgment, the IRP/Applicant herein, after examining the concerned terms of the Settlement Agreement dated 02.01.2025 along with the Form FA submitted by the 0C i.e., M/s. K. Computers, has decided to file this Application seeking for withdrawal of the main CP.
4 At the time of hearing, the counsel for the Respondents vehemently argued the matter and submitted that their signatures on the said Agreement and Form FA was obtained by using force, coercion and threat, and hence the Settlement Agreement is not valid and therefore the IRP has no right to file this lA on the basis of the Settlement Agreement, and hence this I.A. cannot be entertained.
Jahnavi &RSN
I/3|| 5 Heard both the Counscls. During the hearing, this Bench observed that the complaint sent to the Prime Minister of India on 12.12.2024, is before the date of entering into the Settlement Agreement and after the Settlernent Agreement alleged to be based on force, coercion and threat, the Respondent/ OC failed to submit any FIR/Complaint registered before the police authority and thus has chosen not to take any steps before the Competent Authority for registering the FIR either against the CD or IRP. In view of the above facts and circumstances of the case, the Bench has relied on the Settlement Agreement dated 02.01.2025 executed by both the Parties and the Form FA given to the IRP by the Oc. The IRP being a Court Officer is having a right to file appropriate application and IRP has stated that he has received all the fees and costs and there is no further dues in respect of fees and costs. Hence, IA(IBC)/32/2025 is allowed and the CIRP proceedings are withdrawn against the CD, and the CD is released from the rigours of the CIRP proceedings initiated under the IBC, 2016. 7. Accordingly, IA(IBc)/32/2025 is disposed of. In view of the above, CP(IB)/71/9/AMR/2020 also stands disposed of.
Sd/ Sd/ (UMESH KUMAR SHUKLA) (KISHORE VEMULAPALLI) MEMBER (TECHNICAL) MEMBER (JUDICILAL) Sn(18c)/39 (9095 cROE)o "u/aleme (s090 Case No. Date of Application ..OA:Q4:209.5... No. of Paçes ...3.fA9AS. Copying Fo. Its. .95/ Registratlen &2 Total Rs..5 Jahnavi &RSN Ceputy Jegistrar / Assistant Registrar / Dale of tecolpl &t o.d ut Copy .0a:oM.9925 Ceurt/oiticer Date of Preparation ot Copy .0a.0H:R0.. ATIONAL CCEPANY LAW TRIBUNAL bite al Delivery ot Copy ..0.3:QH.9085.... AiaARAVATI BENCH
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