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2019 (3) TMI 1521 - AT - Insolvency and BankruptcyFinancial Creditor reinitiate the Insolvency Resolution Process under Section 7 against the Corporate Debtor - HELD THAT:- A limited notice should have been issued by the Adjudicating Authority and on hearing the parties order of admission or rejection should have been passed. Admittedly, in this case, such procedure was not followed by the Adjudicating Authority and for said reason, the impugned order dated 28th September, 2018 being violative of principle of natural justice, we set aside the said impugned order. In view of the Letter of Settlement, we are not remitting the matter to the Adjudicating Authority. However, on failure to act as per settlement, it will be open to the Financial Creditor to reinitiate the Insolvency Resolution Process under Section 7 against the Corporate Debtor. Order(s) passed by Adjudicating Authority appointing ‘Interim Resolution Professional’, declaring moratorium, freezing of account and all other order(s) passed by Adjudicating Authority pursuant to impugned order and action, if any, taken by the ‘Interim Resolution Professional’, including the advertisement, if any, published in the newspaper calling for applications and all such orders and actions are declared illegal and are set aside. The application preferred by Respondent is dismissed. AR will close the proceeding. The ‘Corporate Debtor’ (Company) is released from all the rigour of law and is allowed to function independently through its Board of Directors from immediate effect. The Adjudicating Authority will decide the fee of ‘Interim Resolution Professional’ and the actual expenditure to which he is entitled and the ‘Corporate Debtor’ will pay the same. The appeal is allowed with aforesaid observations.
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