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2022 (9) TMI 567 - AT - Insolvency and BankruptcySeeking issuance of directions by this Tribunal, to the Resolution Professional, to communicate the revised Settlement Proposal to the Committee of Creditors - Rule 31 of the NCLAT Rules, 2016 - prime contention of the Applicant/Appellant is that the Settlement Agreement is to be placed before the Committee of Creditors and in any event the Appellant is required to abide by the decision taken by the Members of the Committee of Creditors - HELD THAT:- It cannot be gainsaid that an inherent power of a Tribunal/Court of Law, cannot be exercised in violation or in conflict with or upon ignoring express and specific provision of Law. It is pertinently pointed out that the Object of the I & B Code, 2016, is to reorganised and evolve Insolvency Process of Corporate Persons in a time bound manner for maximisation of such Persons. If there is a delay, in regard to the maximisation of value of assets of the Corporate Debtor, it will debilitate the value of realisation of Potential Creditors, in the considered opinion of this Tribunal. No wonder, Time is the essence of the I & B Code, 2016. Without any simmering doubt, Speed is the gist of the Code. A timely Liquidation is preferred over endless Resolution Proceedings, as opined by this Tribunal. This Tribunal, taking note of the primordial fact, that there is no provision under the I & B Code, 2016, authorising this Tribunal, to grant the relief of issuance of direction to the Resolution Professional, in communicating the Settlement Proposal of the Applicant/Appellant to the Committee of Creditors and to place the same for e-voting and since I.A. No.558 of 2022 in the instant Appeal is not filed by the ₹ 1st Respondent/Association at whose behest, the Corporate Insolvency Resolution Process was initiated, added further, the said application is not accompanied with the mandatory Form FA (Application for withdrawal of CIRP under 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as prescribed, all the more, the Draft Settlement Agreement/Proposal has not received the ascent /consent/ approval of the Home Buyers, especially, forming part of the ₹ 1st Respondent/Association who hold approximately ₹ 56% voting share in the Committee of Creditors, and considering the whole gamut of the matter in a holistic fashion, comes to an irresistible, inevitable and inescapable conclusion that application filed by the Applicant/Appellant (under Rule 31 of NCLAT Rules, 2016), is not a Bonafide one. The appeal filed by the Applicant/Appellant is dismissed to prevent an aberration of justice and in furtherance of substantial cause of justice.
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