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2020 (7) TMI 299 - AT - Insolvency and BankruptcySeeking exit from CIRP Process - Respondent No. 2 had arrived at a Settlement with the 'Corporate Debtor' - HELD THAT:- The only conclusion deducible is that the factum of Respondents having inter se arrived at a Settlement prior to passing of the impugned order and constitution of the 'Committee of Creditors' is nothing but a ploy designed to defeat the legitimate interests of other stakeholders. This factual position is clearly borne out by the sequence of events unfolded by record. As the 'Corporate Debtor', despite commitments, failed to settle with all seven Applicants, this could probably be the reason for the Respondents not to seek exit from the 'Corporate Insolvency Resolution Process' before passing of the impugned order as the Settlement inter se them, though not proved to have manifested in the form of a Settlement Agreement, was not all encompassing. This factual position would not warrant exercise of inherent powers under Rule 11 to allow exit of the 'Corporate Debtor' from 'Corporate Insolvency Resolution Process' as the legitimate interests of all other stakeholders, including the Intervenors whose claims have been admitted and the 'Committee of Creditors' is in seisen of the same would be seriously jeopardised. This is apart from the fact that in the event of settlement being entertained the Intervenors whose claims have been admitted will have to face the prospect of garnering the support of threshold limit for initiating de novo 'Corporate Insolvency Resolution Process' against the 'Corporate Debtor' in terms of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 dated 28th December, 2019. The ground urged, apart from not being established by any supporting evidence, does not warrant exit from 'Corporate Insolvency Resolution Process' on the projected ground of Settlement inter se the Respondents, having been arrived at prior to the constitution of the 'Committee of Creditors'. Public interest would not warrant such course to be adopted - Appeal dismissed.
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