TMI Blog2019 (7) TMI 1706X X X X Extracts X X X X X X X X Extracts X X X X ..... l liquidation order. Therefore, there can be no impediment for accepting such settlement even during the process of liquidation as the liquidator has been empowered under the Regulation 32 of the IBBI Liquidation Process Regulation, 2016 that he can sell the assets of the company under liquidation as a going concern. Since, the settlement has been arrived at between the Corporate Debtor and the sole Financial Creditor with 100% majority of the CoC, no further requirement to keep continue of the CIRP. Hence, it is hereby recalled in the light of the settlement arrived between the Corporate Debtor and the sole Financial Creditor. Consequently, the moratorium declared in respect of the Corporate Debtor Company shall cease to have effect. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like to inform you that the majority shareholders of the Corporate Debtor approached IC1CI Bank Limited (ICICI Bank) with a proposal to settle the claims of ICICI Bank against the Corporate Debtor. The majority shareholders also filed an application before the Hon'ble NCLT, Allahabad to this extent. Pursuant to the said application and relying on the representations made by the majority shareholders of the Corporate Debtor, ICICI Bank agreed to the settlement offer of the majority shareholders of the Corporate Debtor. Pursuant to the above, the majority shareholders of the Corporate Debtor and ICICI Bank entered into a settlement agreement dated May 24, 2019 (Settlement Agreement). As per the terms of the Settlement Agreement, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cro Leafin Private Limited' by appointing IRP Mr. Neeraj Chaudhary, who later on replaced by present RP Ms. Pooja Bahry. It is also contended that before the completion of maximum period prescribed for the CIRP i.e. 270 days, the Suspended Management/ Shareholder approached the Financial Creditor Bank which is sole member of the CoC and they reached at amicable settlement, which has been reduced in writing is annexed (as Annexure A1) to the present CA. 6. As per the agreed terms of the settlement, the Corporate Debtor has offered INK 300.0 million and they also offered INR 40.0 million as an upfront payment of settlement amount, such has duly been received by the Financial Creditor. Thus has confirmed and consented to such settlement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted then the company shall go for liquidation, then this would cause unemployment of 1,000 persons, who would he out of their livelihood and impliedly it will cause prejudice to the national economy. 9. Considering such main theme of the I B Code and the light of the various judicial precedents pronounced by the Hon'ble Supreme Court of India, Hon'ble NCLAT and other Benches, the CoC has considered and accepted the settlement offer. 10. We examined the relevant provision of the IB Code in this regard. Now, it is settled legal position that the RP and CoC are legally expected to explore and make every step for bringing resolution and revival of the company which is a rule, while liquidation thereof can only be a last con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing under the Code as soon as possible, we cannot shut our eyes to the fact that a large volume to be handled by both the aforesaid Tribunals. What happens in a case where the NCLT or the NCLAT decide a matter arising out of Section 31 of the Code beyond the time limit of 180 days or the extended time limit of 270 days? Actus curiae neminem gravabit - the act of the Court shall harm no man - is a maxim firmly rooted in our jurisprudence (see Jang Singh v. Brijlal Ors. [1964] 2 S.C.R. 146 at page 149. and A.S. Antulay v. R.S. Nayak Ors. [1988 Supp. 1 SCR. 1 at page 71). It is also true that the time taken by a Tribunal should not set at naught the time limits within which the corporate insolvency resolution process must take place Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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