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2019 (1) TMI 1741 - Tri - Insolvency and BankruptcyValidity of Settlement Plan - the present CIRP against the corporate-debtor ought to have been terminated by the CoC and RP by accepting the offer of settlement - right of the borrower to settle the outstanding debt at any stage of the proceedings by redeeming the debt - HELD THAT:- The provisions of the IB Code are made having an overriding effect under section 238 of the Code on any other law in force and, in the present IB Code, the mode of settlement of debt has been made permissible only by way of an application to be moved under section 12A of the Code and not otherwise. As per the above stated provision, it is made open to the applicants to move such application only through the RP and the CoC before this court provided 90 per cent. members of the CoC have approved such settlement offer. Before introducing such section 12A, it was not open to the Adjudicating Authority to settle the debts or accept settlement offer after admission of the petition under the IB Code. The post admission settlement was not permissible because it is a settled legal position that once the petition is admitted, it becomes remedy in rem not in personem under the scheme of the Code and it was not made open even for the applicant/financial creditor to seek withdrawal of the CIRP on the pretext of subsequent settlement arrived at in the matter. To consider and examine the scope of settlement within the purview of section 60(5) of the IB Code would not be proper when the specific provisions for settlement of debts under section 12A have already been incorporated in the Code and if such an application for settlement is considered under the provisions of section 60(5) of the IB Code, it may amount to deviation from the expressed statutory provisions because it is a settled legal position that if a particular thing is not allowed to do directly, it cannot be done indirectly. Application not found maintainable within the ambit and scope of section 12A and section 60(5) of the IB Code and, hence, it is rejected on this limited ground that it is not maintainable before this Adjudicating Authority - application dismissed.
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