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2021 (8) TMI 1281 - AT - Insolvency and BankruptcySeeking withdrawal of application u/s 12A of the IBC - CoC has not complied the provisions of IBC as well as Regulation as regards time limitation or not - receiving of outstanding amount constituting monetary committee inline of IBC and CIRP Regulation or not - backup plan is provided in case of failure to meet short fall within the time line agreed by the parties or not - it is also alleged that Settlement proposal contends a lot of uncertainty and depends on future events - HELD THAT:- The legislation has provided a procedure for withdrawal of Application under Section 7, 9 or 10 of the IBC. In this case, the CoC has been constituted, therefore, the Application for withdrawal approved by the 99.9% voting shares of the CoC and the Application has been filed through the RP as provided under Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (Regulations). There is a provision in the settlement deed that in case the settlement fails, the lenders may file Application for revival of CIRP or may file Application for initiation of contempt proceedings against the promoters of the Company. None of the conditions of settlement is against the provisions of IBC and Regulation and CoC has taken a commercial decision by voting shares of 99.9%. In such a situation, it is not appropriate to dismiss the Application on the ground that the CoC has not taken steps in time bound manner as provided in IBC and Regulations. The Application under Section 12A is allowed and the Application filed by STCI Finance Ltd. under Section 7 of the IBC is withdrawn - Application allowed.
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