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2019 (9) TMI 1445 - Tri - Insolvency and BankruptcyPermission for withdrawal of application - compromise arrived before constitution of CoC - Section 12A of Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Admittedly in the present case the compromise was arrived at between the corporate debtor and the petitioner financial creditor before the Constitution of Committee of Creditors. Accordingly, inherent power of the Tribunal can be used in allowing the withdrawal in appropriate cases as per the precedent laid down by Honble Supreme Court in SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. [2019 (1) TMI 1508 - SUPREME COURT]. Once the Code is triggered after admission of the application the proceedings becomes a collective proceeding and proceeding in rem. Therefore, inherent power is to be used by the Adjudicating Authority after hearing the parties and considering all relevant factors of each case - In the present case the application has been wrongly filed under Section 12A of the Code as meetings of CoC has not yet commenced and therefore applicability of Section 12A does not arise. It is seen that petitioner has 14.92%, whereas the other financial creditor has 85.08% of the financial debt of the corporate debtor. Therefore, the present application cannot be allowed at the back of the financial creditor who holds 85.08% of the financial debt, as it will cause prejudice to such financial creditor. That apart once the application is allowed it may amount to preferential payment of 100% debt of the petitioner, whereas the other financial creditor may be exposed to substantial haircut - this is not a fit case to use inherent power at this stage of the proceeding and at the back of the other financial creditor holding 85.08% of the financial debt. Application dismissed.
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