2019 (4) TMI 2037 - Tri - Insolvency and Bankruptcy

Seeking withdrawal of petition - Assignment of Debt - COC is not constituted and the Applicant and the Corporate Debtor have agreed to negotiate and restructure the loan - HELD THAT - The IRP has filed memo that he has no objection for withdrawal of this Petition. This case is a fit case for the Adjudicating Authority to invoke Rule 11 of NCLT Rules and accordingly this application is allowed and the Order of CIRP passed in this Petition is recalled and the IRP is discharged from his duties.

Summary

Issues: Application for early hearing, Substitution of financial creditor, Withdrawal of Corporate Petition

Application for Early Hearing:
An application was filed for early hearing of the case, which was allowed by the Tribunal. The case involved the assignment of debts from a Financial Creditor to another party. The Tribunal heard the counsel for the applicant and allowed the application by substituting the name of the assignee as the financial creditor in place of the original creditor in the Corporate Petition. The application was disposed of in these terms.

Substitution of Financial Creditor:
Another application was filed by the assignee of the debt for the withdrawal of the Corporate Petition. The assignee, as the new financial creditor, requested withdrawal of the petition due to the absence of a Committee of Creditors (COC) and an agreement between the assignee and the Corporate Debtor to negotiate and restructure the loan. The Interim Resolution Professional (IRP) had no objection to the withdrawal. Citing a Supreme Court order, the Tribunal invoked Rule 11 of NCLT Rules and allowed the application. Consequently, the Order of Corporate Insolvency Resolution Process (CIRP) was recalled, and the IRP was discharged from duties. The application was allowed, and the Corporate Petition was dismissed as withdrawn.

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