TMI Blog2021 (8) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... e IBC. In this case, the CoC has been constituted, therefore, the Application for withdrawal approved by the 99.9% voting shares of the CoC and the Application has been filed through the RP as provided under Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (Regulations). There is a provision in the settlement deed that in case the settlement fails, the lenders may file Application for revival of CIRP or may file Application for initiation of contempt proceedings against the promoters of the Company. None of the conditions of settlement is against the provisions of IBC and Regulation and CoC has taken a commercial decision by voting shares of 99.9%. In such a situation, it is not appropria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Brief facts of these Appeals are that STCI Financial Ltd. (Financial Creditor) filed Application under Section 7 of the IBC against the (Corporate Debtor) Parinee Developers Pvt. Ltd. The Application was admitted by the Adjudicating Authority vide order dated 09.06.2020 and Subhash Chandra Modi was appointed as an Interim Resolution Professional (IRP). Thereafter, the CoC was duly constituted and resolved to appoint IRP as RP during its meeting dated 18.07.2020, on 08.12.2020 the Promoters sent a settlement proposal which outlined plan for revival of operation of the Corporate Debtor and full payment to the lenders including principal, interest and all the expenses. 4. On 08.02.2021 during the CoC meeting the RP placed for FA befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in complying with procedural requirement under the IBC do not and cannot pose any detriment to the commercial wisdom of the CoC to approve the settlement deed. The finding of Ld. Adjudicating Authority has to absence of a backup plan is contrary to the terms of the settlement deed itself which expressly provides that in the case of any default in making outstanding payments in terms of the settlement deed, the lenders would have the right to move the Adjudicating Authority for revival of CIRP. However, dismissed the Application under Section 12A of the IBC on the basis of irrelevant considerations and hyper-technical observations. 9. Ld. Counsel for the Appellant in CA (AT) (Ins) No. 451 of 2021 supports the argument advanced by the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (Regulations). 13. We have gone through the settlement deed. There is a provision in the settlement deed that in case the settlement fails, the lenders may file Application for revival of CIRP or may file Application for initiation of contempt proceedings against the promoters of the Company. None of the conditions of settlement is against the provisions of IBC and Regulation and CoC has taken a commercial decision by voting shares of 99.9%. In such a situation, it is not appropriate to dismiss the Application on the ground that the CoC has not taken steps in time bound manner as provided in IBC and Regulations. 14. We are of the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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