Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Withdrawal of application of CRIP Interpretation of s. 12A and Regn 30A ibc |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Insolvency and Bankruptcy Code, 2016: ss. 9 and 12A – Interpretation of s. 12A and Regn. 30A – Withdrawal of application of Corporate Insolvency Resolution Process-CIRP before the constitution of Committee of Creditors-CoC – Validity of – Held: s. 12A permits withdrawal of applications admitted u/ss. 7, 9 and 10 – s. 12A does not debar entertaining applications for withdrawal even before constitution of CoC – Application u/s. 12A cannot be said to be kept pending for constitution of CoC, even where such application was filed before the constitution of CoC – Furthermore, Regn. 30A clearly provided for withdrawal applications being entertained before constitution of CoC – It does not in anyway conflicts or is in violation of s. 12A – There is no inconsistency in the two provisions – It only furthers the cause introduced vide s. 12A – On facts, petition u/s.9 filed by Operational Creditor-OC before NCLT for its outstanding amount against the Corporate Debtor-CD – Petition admitted and CIRP initiated – Within two days of admission order, OCs and CD entered into a settlement for payment of the amount even before constitution of CoC – After receipt of the settlement amount, OC filed application u/s. 12A and Interim Resolution Professional filed an application u/Regn. 30A seeking withdrawal of CIRP against the CD – However, the NCLT rejected the withdrawal application – Said order cannot be sustained – NCLT erred in taking a contrary view – At the time when the application for withdrawal of the proceedings was filed the CoC was not constituted as such there could not have been any other concerned parties except the OC, CD and IRP – It was only because of the delay caused by the NCLT in disposing of the applications u/s. 12A and Regn. 30A that large number of creditors filed their claims – Inherent powers are to be invoked in order to meet the ends of justice which the NCLT failed to invoke – Thus, application filed u/Regn. 30A allowed and application u/s. 9 filed by the OCs stands withdrawn – Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2018 – Regn. 30 A. |
Judge | Hon'ble Mr. Justice Vikram Nath |
Neutral Citation | 2023 INSC 308 |
Petitioner | Abhishek Singh |
Respondent | Huhtamaki Ppl Ltd. & Anr. |
SCR | [2023] 4 S.C.R. 596 |
Judgement Date | 2023-03-28 |
Case Number | 2241 |
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