Sumati Prasad Bafna vs Unity Small Finance Bank Ltd & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 162 of 2024
Ratio decidendi
The rule this decision rests on
The order sets aside the impugned admission order under Section 7 and releases the corporate debtor from CIRP on the ground that the financial creditor has approved a one-time settlement, the tribunal finding no reason to continue the appeal or the CIRP once the settlement is before it. It further directs the appellant to pay Rs. 2.5 lakh to the interim resolution professional as costs, with liberty reserved to the financial creditor to seek revival of the appeal.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Sumati Prasad Bafna ...Appellant(s)
Versus
Unity Small Finance Bank & Anr. ...Respondent(s) Present: For Appellant : Mr. Sidhant Kapoor, Advocate. For Respondents : Mr. Ayush J. Rajani, Advocate for R-2. Mr. Karan Grover, Advocate.
ORDER
(Hybrid Mode)
12.04.2024: This Appeal has been filed against the order dated
11.01.2024 by which Section 7 application filed by the Financial Creditor has
been admitted. In this Appeal, this Tribunal passed an interim order on
23.01.2024 by which operation of the impugned order was stayed till the next
date of hearing which was continued thereafter. An I.A. has been filed bearing
I.A. No. 2365 of 2024 by which parties have brought on record the One Time
Settlement which was approved by the Financial Creditor dated 04.03.2024.
2. In view of the settlement, we see no reason to continue this Appeal or
CIRP against the Corporate Debtor. The order impugned is set aside. The
Corporate Debtor is free from CIRP.
3. The Learned Counsel for the Appellant submits that the order
impugned was immediately stayed vide order dated 23.01.2024 and no steps
have been taken in the CIRP by the IRP.
4. In view of the aforesaid, we are of the view that the Appellant shall pay
amount of Rs. 2.5 Lakh to the IRP within two weeks from today. The liberty is -2-
reserved to the Financial Creditor to apply for revival of the Appeal if any
occasion arises.
With the above observations and directions, the Appeal is disposed off.
[Justice Ashok Bhushan] Chairperson
[Arun Baroka] Member (Technical)
R.N./Manu.
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