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2019 (4) TMI 594 - Tri - Insolvency and BankruptcyWithdrawal of IB petition - proposal of settlement at the post-admission of the present IB Petition - Adjudicating authority power and jurisdiction to permit the petitioner to withdraw this IB Petition at post admission stage even without seeking consent of the CoC and its members - HELD THAT:- The present application for settlement was filed on 04.02.2019 before this Adjudicating Authority, which is prior to the constitution of the CoC. That apart, it is pertinent to note here that there is sole member in the CoC i.e. IOB, who may or may not give its consent for such withdrawal of the IB Petition. While the provisions of Section 12-A of the Code stipulates that settlement can be made with 90% voting of the members of the CoC, which is not practically possible in the present case, being sole member who can accept or reject the proposal by 100% voting only. The interest of the Financial Creditor, being a sole member of the CoC, can adequately be taken care of while making such observation that the present settlement in no manner shall affect the rights and the claim of the sole Financial Creditor or any other creditor to agitate the same before a competent Court of Law including this Adjudicating Authority under the relevant provisions of the Code. The Operational Creditor has moved the present application, by settling its dues for an amount of ₹ 35,00,000/- (Rupees Thirty Five Lakhs only) as full and final settlement which happen much prior to the constitution of the CoC. Hence, this Adjudicating Authority can accept it in the interest of justice by following case of SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. [2019 (1) TMI 1508 - SUPREME COURT OF INDIA] No impediment for accepting the proposal of settlement at the post-admission of the present IB Petition. Hence, it is hereby accepted. Notwithstanding the above, it is expedient to issue necessary direction to the Petitioner-Operational Creditor as well as to the Corporate Debtor company to bear the expenses and cost of the CIRP, which has been incurred by the present IRP, towards payment of his professional fees and other expenses incurred.
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