Can a single lender settle the dues under RBI Framework after admission of insolvency petition? | Can an application for withdrawal from CIRP be entertained after the CoC approves the Resolution Plan? | Is writ petition maintainable even the efficacious statutory remedy under section 60(5) of the IBC available? – Mandava Holdings Pvt. Ltd. Vs. PTC India Financial Services Ltd. – Telangana High Court
The Hon’ble Telangana High Court held that:
(i) The IBC does not provide for such a scenario that the borrowing entity/ Corporate Debtor can negotiate with only one of the creditors in the CoC to the exclusion of the other creditors.
(ii) The RBI Framework recognizes the precedence of the relevant statute (the IBC in this case) and that any settlement must be done within the statutory framework of the IBC.
(iii) The writ petition is also not maintainable in view of the efficacious statutory remedy under section 60(5) of the IBC which is a comprehensive Code envisaging all possible scenarios and modes of redress within the four corners of the IBC.