Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 62 – Arbitration proceedings between corporate debtor and respondent no. 1 to 3 were pending – Respondent nos.1 to 3 filed application u/s.7 of IBC before the NCLT Insolvency and Bankruptcy Code 2016 - Ss. 7 12A |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Insolvency and Bankruptcy Code, 2016 - Ss. 7, 12A, 62 – Arbitration proceedings between corporate debtor and respondent no. 1 to 3 were pending – Respondent nos.1 to 3 filed application u/s. 7 of IBC before the NCLT – Arbitrator passed award directing corporate debtor to make payment – Parties arrived at a settlement – NCLAT considering settlement granted interim stay of publication u/s. 13 of the IBC – Parties filed application u/s. 12A of IBC before the NCLT with the consent of IRP and the same was pending – However, NCLAT staying the formation of CoC, permitted the IRP to issue publication and also to handover all assets and proceed with CIRP even though matter was settled between the parties – On appeal, held: Section 12A of the IBC clearly permits withdrawal of an application u/s. 7 of the IBC that has been admitted on an application made by the applicant – Before the Committee of Creditors is constituted, there is no bar to withdrawal by the applicant of an application admitted u/s. 7 of the IBC – Settlement cannot be stifled before the constitution of the CoC in anticipation of claims against the corporate debtor from third persons – There is no reason why the applicant for CIRP, should not be allowed to withdraw its application once disputes have been settled – NCLT directed to take up the settlement application. |
Judge | Hon'ble Ms. Justice Indira Banerjee |
Neutral Citation | 2022 INSC 1003 |
Petitioner | Ashok G. Rajani |
Respondent | Beacon Trusteeship Ltd. & Ors |
SCR | [2022] 18 S.C.R. 133 |
Judgement Date | 2022-09-22 |
Case Number | 4911 |
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