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2020 (1) TMI 150 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - amicable settlement - breach of terms of settlement - default of post dated cheques - Appellate Tribunal directed the Appellant to file affidavit on behalf of the Promoter of the Corporate Debtor giving undertaking that the post-dated cheques will be encashed on presentation and they will not be defaulted - HELD THAT:- In the light of decision of Hon’ble Supreme Court in ‘Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.’, [2019 (1) TMI 1508 - SUPREME COURT] and in exercise of power conferred under Rule 11 of NCLAT Rules, 2016, we set aside impugned order dated 3rd September, 2019 passed by the Adjudicating Authority initiating Corporate Insolvency Resolution Process against ‘M/s Jagtar Singh and Sons Hydraulics Private Limited’ conditionally, subject to the compliance of the Terms of Settlement by the end of August, 2020. Terms of Settlement as recorded by the Hon’ble Mediator should be treated to be order and direction of this Appellate Tribunal to be complied by all the parties including the Promoters of ‘M/s Jagtar Singh and Sons Hydraulics Private Limited’ (Corporate Debtor); Parvinder Singh, Authorized Representative; Intec Capital Ltd. And Interim Resolution Professional. In the present, whole process practically stands suspended for compliance of the Terms of Settlement. The Corporate Insolvency Resolution Process can be revived by the Petitioner in case of breach of Terms of Settlement or default of any post-dated cheque. On completion of compliance of terms and conditions, the application under Section 7 will be deemed to have been withdrawn by ‘Intec Capital Ltd.’, otherwise the order setting aside the impugned order dated 3rd September, 2019 shall stand recalled and the Corporate Insolvency Resolution Process will continue - appeal disposed off.
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