The Tribunal allowed an application for withdrawal of the CIRP proceeding under Section 9 IBC after the corporateDebtor and the applicant settled matters post-initiation. Costs were not imposed, but parties were advised against wasteful litigation.
Allow CP (IB) 518 of 2019 to be withdrawn and dispose of the main application.
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IN THE NATIONAL COMPANY LAW TRIBUNAL, AHMEDABAD COURT - 2
Item No.2 – IA 567 of 2022 In CP(IB) 518 of 2019
Proceedings under Section 9 IBC
IN THE MATTER OF: Mateshwari Minerals Through Its Proprietor Piyush Bangar ........Applicant V/s Jet Granito Pvt Ltd ........Respondent
Order delivered on 07/07/2022
Coram:
Dr.Deepti Mukesh, Hon’ble Member(J) Ajai Das Mehrotra, Hon’ble Member(T)
PRESENT:
For the Applicant : Mr. Vinit Nagar, PCS For the Respondent : Ms. Shaili Shah, Adv.
ORDER
IA 567 of 2022
Application is filed under Section 12 A of IBC, 2016 seeking withdrawal of the main IB application, wherein the initiation of CIRP order was passed on 23.06.2022. Learned Counsel for the applicant states that the parties entered into the settlement by executing a settlement deed on 28.06.2022, and Form- FA, also dated 28.06.2022, is annexed with this application. Learned Counsel for the IRP states that the public announcement is yet not made, hence, no claims are received, and no CoC is constituted so far. The IRP has not taken any further steps of taking possession of assets and documents of the corporate debtor. In view of the settlement it is prayed that the application may be allowed and CIRP withdrawn. Considering the submission made and documents placed on record, we allow the application; thereby allow CP (IB) 518 of 2019 to be withdrawn, which stands disposed of. We notice that after passing the initiation of CIRP order on 23.06.2022,
the parties endeavoured and settled on 28.06.2022, though the application is of 2019, hence, wasting lot of judicial time. Learned Counsel for the both the sides state that the claim was not very huge and leniency is requested, hence, we refrain from passing any order imposing cost, but the parties are advised not to enter into litigation and stretch it, wasting everyone’s time.
Application is disposed of.
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AJAI DAS MEHROTRA MEMBER (TECHNICAL)
DR. DEEPTI MUKESH MEMBER (JUDICIAL)
2 issues framed by the court
Whether an application for withdrawal of corporate insolvency resolution process can be allowed upon settlement between parties.
Whether frivolous litigation in Insolvency proceedings attracts an order for costs.
2 provisions across 1 enactments
Mateshwari Minerals Through Its Proprietor Piyush Bangar
Jet Granito Pvt Ltd
Dr.Deepti Mukesh
Ajai Das Mehrotra
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
