IBC Laws - Even during the Liquidation Process, the parties have arrived at a settlement, then the Application filed under Section 7, 9 and 10 can be withdrawn u/s 12A of IBC - S. Rajendran, Liquidator of M/s. Arohi Infrastructure Pvt. Ltd. Vs. Tata Capital Financial Services Pvt. Ltd.

Even during the Liquidation Process, the parties have arrived at a settlement, then the Application filed under Section 7, 9 and 10 can be withdrawn u/s 12A of IBC – S. Rajendran, Liquidator of M/s. Arohi Infrastructure Pvt. Ltd. Vs. Tata Capital Financial Services Pvt. Ltd. – NCLT Chennai Bench

July 7, 2022

The Adjudicating Authority held that it is significant to refer to the Judgment of the Hon'ble NCLAT in the matter of Shwetha Vishwanath Shrike & Ors. vs. The Committee of Creditors & Anr. (2019) ibclaw.in 470 NCLAT has held that the Promoters / Shareholders are entitled to settle the matters in terms of Section 12A and in such case, it is always open to the Applicant to withdraw the Application. Further, the Hon'ble NCLAT in the matter of V. Navaneetha Krishnan -Vs- Central Bank of India, Coimbatore & Anr. (2018) ibclaw.in 298 NCLAT has held that even during the Liquidation period, if any persons, nor barred under Section 12A of IBC, 2016 satisfy the demand of the Committee of Creditors, such person may move before the Adjudicating Authority for withdrawal of proceedings. Thus, it could be seen even during the liquidation process, the parties have arrived at a settlement, then the Application filed under Section 7, 9 and 10 can be withdrawn.

PDF & Print

I. Case Reference

Case Citation	:	(2022) ibclaw.in 607 NCLT
Case Name	:	S. Rajendran, Liquidator of M/s. Arohi Infrastructure Pvt. Ltd. Vs. Tata Capital Financial Services Pvt. Ltd.
Corporate Debtor	:	M/s. Arohi Infrastructure Pvt. Ltd.
Application/Appeal No.	:	IA(IBC)/514(CHE)/2022 in CP/672/IB/2017
Judgment Date	:	20-Jun-22
Court/Bench	:	NCLT Chennai Bench
Member (Judicial)	:	Justice (Retd.) S. Ramathilagam
Member (Technical)	:	Shri B Anil Kumar

II. Brief about the decision

In the present case, the Corporate Debtor is under Liquidation by an order passed by NCLT dated 05.12.2018. Thereafter, it is seen that multiple steps have been taken by the Liquidator in order to sell the assets of the Corporate Debtor, however the same did not yield any fruitful result.

The Adjudicating Authority held that at this juncture, it is significant to refer to the Judgment of the Hon’ble NCLAT in the matter of Shwetha Vishwanath Shrike & Ors. vs. The Committee of Creditors & Anr. (2019) ibclaw.in 470 NCLAT has held that the Promoters / Shareholders are entitled to settle the matters in terms of Section 12A and in such case, it is always open to the Applicant to withdraw the Application. Further, the Hon’ble NCLAT in the matter of V. Navaneetha Krishnan -Vs- Central Bank of India, Coimbatore & Anr. (2018) ibclaw.in 298 NCLAT has held that even during the Liquidation period, if any persons, nor barred under Section 12A of IBC, 2016 satisfy the demand of the Committee of Creditors, such person may move before the Adjudicating Authority for withdrawal of proceedings. Thus, it could be seen even during the liquidation process, the parties have arrived at a settlement, then the Application filed under Section 7, 9 and 10 can be withdrawn. Under the said circumstances, the present Application stands allowed and the CP/672/IB/2017 stands withdrawn. Consequently, the CIRP and the Liquidation initiated against the Corporate Debtor also stands withdrawn. The Liquidator is directed to hand over the management to the Board of Directors and the Liquidator is also released from his duties. Accordingly, stands allowed.(p33-34)

III. Full text of the judgment

Click here for Judgment

Click on below button to search similar judgments:

Case Laws Portal

Join WhatsApp Channel

Bare Acts/Legal Contents

IBC Commentary

Arbitration Portal