Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2021 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 771 - AT - Insolvency and BankruptcyValidity of CIRP proceedings - Committee of Creditors came to be constituted by the IRP hastily - Operational Creditor was settled and in terms of the Settlement Agreement - HELD THAT:- It is established that immediately after passing of the impugned order, the claim of Operational Creditor was settled and in terms of the Settlement Agreement, which envisaged payment of ₹ 13,47,989/- towards full and final settlement of the claim of Operational Creditor, withdrawal application was to be filed before the Adjudicating Authority as a sequel to settlement. It is flabbergasting to find that the Committee of Creditors came to be constituted by the IRP on 16th March, 2021 so hastily though only a single claim was said to have been received by the IRP. Without commenting upon the fairness of the procedure adopted in constituting the Committee of Creditors so hastily, in view of the fact that the Operational Creditor, being the sole claimant is satisfied with the settlement of his claim in terms of the Settlement Agreement executed barely within four days of the passing of the impugned order in ex parte demonstrating that it had the capacity and will to settle the Operational Creditor’s claim, we find this to be a fit case for accepting the settlement arrived at between the parties. The Corporate Debtor is released from the rigour of CIRP - Appeal disposed off.
|