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2022 (5) TMI 1448 - Tri - Insolvency and BankruptcySeeking withdrawal of CIRP application - multiple applications are filed by various other creditors (objectors) to the withdrawal of the CIRP - Section 12A of the IBC, 2016 - HELD THAT:- The application has been filed prior to the constitution of the CoC, there is no requirement to obtain the consent of the members of the CoC and the CIRP process should be closed. At the outset, it is noted that the Interim Resolution Professional has himself filed application only after 12 days of commencement of the CIRP but has chosen to continue with normal functions under CIRP without pursuing the application with this Adjudicating Authority. Even if it may be technically correct, it does not sync with the spirit of the Code. It is also noticed that the Directors have not handed over the records and assets to the IRP subsequent to their settlement with the Operational Creditor. This Bench, therefore, proceeds to categorize the activities for which expenses have been claimed as mentioned in Para 14 into two different categories; essential and non-essential - The expenses relating to the valuation are disallowed because the Directors have admittedly not handed over the records and assets. Similarly, the payment to advocate for a PUFE transaction for application under preparation is disallowed because, in the absence of records, it is difficult to justify any payment for the preparation of such an application. The main petition filed under Section 9 of the IBC, 2016 is ordered to be dismissed as withdrawn and the Corporate Debtor is released from all the rigors of the IBC and Regulations made thereunder subject to the payment of Rs. 8,36,001/- towards reimbursement of the expenses incurred by the IRP. Moratorium under Section 14 of the Code comes to an end. Application allowed.
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