TMI Blog2019 (9) TMI 1445X X X X Extracts X X X X X X X X Extracts X X X X ..... . [ 2019 (1) TMI 1508 - SUPREME COURT] . Once the Code is triggered after admission of the application the proceedings becomes a collective proceeding and proceeding in rem. Therefore, inherent power is to be used by the Adjudicating Authority after hearing the parties and considering all relevant factors of each case - In the present case the application has been wrongly filed under Section 12A of the Code as meetings of CoC has not yet commenced and therefore applicability of Section 12A does not arise. It is seen that petitioner has 14.92%, whereas the other financial creditor has 85.08% of the financial debt of the corporate debtor. Therefore, the present application cannot be allowed at the back of the financial creditor who hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following three stages. a) On settlement before the admission of the application under Section 7, 9 or 10 of the Code in terms of Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. b) On settlement with the petitioner after admission but before constitution of CoC under inherent power under rule 11 of NCLT Rules (in view of the decision in Swiss Ribbons Case). c) Withdrawal in terms of Section 12A of the Code. 3. In order to appreciate the matter in its proper perspective the relevant date wise development of the present case as per the affidavit of IRP is furnished below: a. 31.07.2019 -Application u/s 7 admitted. IRP appointed. b. 04.08.2019 - Claims invited through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at any stage where the committee of creditors is not uet constituted, a party can approach the NCLT directly, which Tribunal may, in exercise of its inherent powers under Rule 11 of the NCLT Rules, 2016, allow or disallow an application for withdrawal or settlement. This will be decided after hearing all the concerned parties and considering all relevant factors on the facts of each case. (emphasis given) 6. It is accordingly seen that once the Code is triggered after admission of the application the proceedings becomes a collective proceeding and proceeding in rem. Therefore, inherent power is to be used by the Adjudicating Authority after hearing the parties and considering all relevant factors of each case. 7. In the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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