2025 (6) TMI 1274 - AT - IBC

Admission of Section 7 Application - Appellant is willing to deposit the principal amount - settlement arrived between the parties - HELD THAT - In view of the settlement between the Parties it is open for the Financial Creditor the Respondent herein to file an appropriate Application under Section 12A for withdrawal of the CIRP which may be considered and decided by the Adjudicating Authority in accordance with the law considering all relevant facts into consideration. Counsel for the Respondent No. 1 submits that Application shall be filed within three days. The Adjudicating Authority may consider and dispose of the Application as early as possible preferably within a period of two weeks. Appeal disposed of.

Summary

The National Company Law Appellate Tribunal (NCLAT) disposed of an appeal against the Adjudicating Authority's order dated 03.07.2024, which admitted a Section 7 application filed by the Financial Creditor, Mr. Ishwar Punjabi. Although the Appellant contested the existence of financial debt, he expressed willingness to deposit the principal amount of Rs. 9,73,00,000/- as a demonstration of bonafide, pursuant to the Tribunal's interim order dated 23.07.2024.Subsequently, on 05.03.2025, both parties filed an Interlocutory Application presenting a settlement dated 28.02.2025. The Appellant requested closure of the Corporate Insolvency Resolution Process (CIRP) in light of this settlement. The Tribunal noted the presence of other Financial Creditors, including the State Bank of India, and held that the Financial Creditor may file an application under Section 12A for withdrawal of the CIRP. The Adjudicating Authority is directed to consider and dispose of such application expeditiously, preferably within two weeks.The Tribunal's interim protection granted in the appeal shall continue until the Adjudicating Authority passes its order, and further proceedings will be governed accordingly.