Mukesh Bhardwaj vs Sarvottam Rolling Mills Private ...
- CitationCompany Appeal (AT) (Insolvency) No. 529 of 2023
Ratio decidendi
The rule this decision rests on
The Appellate Tribunal set aside an order admitting a Section 9 application and relieved the corporate debtor from the CIRP on the ground that, after admission, the operational creditor had been paid in full under a settlement, so that continuing the CIRP served no purpose. The principle the decision rests on is that where the operational creditor's debt has been fully discharged after admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, the continuation of the CIRP serves no purpose and the admission order may be set aside, with the corporate debtor relieved from the process, upon payment of the IRP's fee and publication expenses.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mukesh Bhardwaj ...Appellant
Versus
Sarvottam Rolling Mills Ltd. & Anr. ...Respondents
Present: For Appellant: Febin M Varghese, Dhiraj Philip, Samuel David, Advocates For Respondent: Mr. Shashwat Anand, Mr. Shashwat Parihar, Advocates for RP
ORDER
27.04.2023: This Appeal has been filed against the Order dated 10th
April, 2023 by which an Application under Section 9 of the Insolvency and
Bankruptcy Code, 2016 has been admitted by the Adjudicating Authority and
commenced the Corporate Insolvency Resolution Process.
2. Learned Counsel for the Appellant submits that after order dated 10th
April, 2023, settlement has been entered into between the Corporate Debtor
and the Operational Creditor dated 15th April, 2023 and in pursuance of the
Settlement, entire payment of the Operational Creditor has already been paid.
Learned Counsel for the Operational Creditor submits that Operational
Creditor has received the entire payment.
3. Learned Counsel for the IRP is also present and submits that he has
made publication in pursuance of the Impugned Order. Learned Counsel for
the Appellant submits that Adjudicating Authority has directed for payment
of Rs. 2 Lakhs as fee. He shall make the payment of Rs. 2 Lakhs as fee plus
expenses incurred by the IRP in publication.
-2-
4. We are of the view that in view of the aforesaid, there is no purpose in
continuing the CIRP against the Corporate Debtor. We set aside the Impugned
Order dated 10th April, 2023 and the Corporate Debtor is relieved from the
CIRP. We further direct the Appellant to make payment of Rs. 2 Lakhs as fee
plus expenses incurred in publication within two weeks from today to IRP.
The Appeal is disposed of.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical)
Basant/nn
Company Appeal (AT) (Insolvency) No. 529/2023
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