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2019 (3) TMI 1643 - AT - Insolvency and BankruptcyAdmissibility of application - Section 9 of the Insolvency and Bankruptcy Code, 2016 - constitutionality of Committee of Creditors - HELD THAT:- It is clear that much prior to constitution of Committee of Creditors parties reached settlement on 26th December, 2018. The question whether in view of settlement reached between the parties prior to constitution of Committee of Creditors, the shareholders of the Corporate Debtor can be granted relief or not fell for consideration of Hon’ble Supreme Court in SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. [2019 (1) TMI 1508 - SUPREME COURT] where it was held that at any stage where the committee of creditors is not yet constituted, a party can approach the NCLT directly, which Tribunal may, in exercise of its inherent powers under Rule11 of the NCLT Rules, 2016, allow or disallow an application for withdrawal or settlement. In the present case, as we find that the parties have reached settlement prior to constitution of Committee of Creditors, in view of that the Appellant is entitled to derive advantage of the settlement - the application under Section 9 filed by the Operational Creditor dismissed. Appeal allowed.
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