NCLAT set aside order of NCLT in which the Application under Section 12A was dismissed on some grounds – Vipul Dilip Shah & Ors. Vs. Parinee Developers Pvt. Ltd. Through RP Subhash Chandra Modi & Anr. – NCLAT New Delhi
In this case, Adjudicating Authority has dismissed the application under Section 12A of the IBC mainly on grounds that: (i) The IBC and CIRP Regulation provide for various activities to be completed in a time bound manner and model time lines is provided for the same. However, the CoC has not complied the provisions of IBC as well as Regulation. (ii) In the settlement there is condition that after receipt of the approval for withdrawal of the Application under Section 7 of the IBC within 60 days, they would receive their outstanding amount constituting monetary committee is not inline of IBC and CIRP Regulation, (iii) No backup plan is provided in case of failure to meet short fall within the time line agreed by the parties. (iv) The Settlement proposal contends a lot of uncertainty and depends on future events. NCLAT set aside the order.
