Allowed

In the matter of Green Elephant India Private Limited [Ia 1350-2023 in C.P. (IB)-609(MB)2021]

NCLT17 Apr 2023IA 1350-2023 in C.P. (IB)-609(MB)2021

Case brief

AI extract

What is this about?

The Tribunal allowed an application by the Interim Resolution Professional (IRP) to withdraw the Corporate Insolvency Resolution Process (CIRP) for Green Elephant India Private Limited. The court held that since the Corporate Debtor had settled the Operational Creditor's claim prior to the CoC constitution, conditions for withdrawal were met.

What did the court decide?

Application for withdrawal of CIRP allowed; Corporate Petition C.P. (IB)/609(MB)2021 dismissed; Resolution Professional discharged.

In the matter of Green Elephant India Private Limited… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH

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COURT – IV

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IA 1350/2023 IN C.P. (IB)/609(MB)2021

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CORAM:

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SHRI PRABHAT KUMAR SHRI KISHORE VEMULAPALLI MEMBER (Technical) MEMBER (Judicial)

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ORDER SHEET OF THE HEARING HELD ON 17.04.2023

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NAME OF THE PARTIES: Indian Renewable Energy Development Agancy Limited Vs

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Green Elephant India Private Limited

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SECTION: 7, 12A OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016

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O R D E R

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The Court is convened through Video Conference.

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Mr. Devul Dighe, Ld. Counsel for the Applicant present.

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IA-1350/2023: This is an Application filed by the Interim Resolution Professional (IRP) under Section 12A of the Code seeking withdrawan of CIRP as well as Company Petition C.P. (IB)/609(MB)2021.

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The Applicant submits that the Company Petition was admitted by this Bench and CIRP was initiated vide order dated 27.01.2023. Pursuant to the admission order was passed, Interim Resolution Professional publish Form-A on 06.02.2023 for inviting claims and the last date of submission of claims is 31.07.2023.

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After admission of the Petition, the Corporate Debtor has settled the claim with the Operational Creditor and paid entire amount of

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SVR

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Rs.20,88,380/-. However, they have not received any claims, therefore, the CoC has not been constituted. Therefore, we approached before this Bench by this Application to allow the withdrawal of Company Petition. 5. The Resolution Professional has also filed form FA for withdrawal of Company Petition.

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The Hon’ble Supreme Court in Swiss Ribbons Private Limited & Anr. Versus Union of India & Ors., held that:

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“52 It is clear that once the Code gets triggered by admission of a creditor‘s petition under Sections 7 to 9, the proceeding that is before the Adjudicating Authority, being a collective proceeding, is a proceeding in rem. Being a proceeding in rem, it is necessary that the body which is to oversee the resolution process must be consulted before any individual corporate debtor is allowed to settle its claim. A question arises as to what is to happen before a committee of creditors is constituted (as per the timelines that are specified, a committee of creditors can be appointed at any time within 30 days from the date of appointment of the interim resolution professional). We make it clear that at any stage where the committee of creditors is not yet 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.”

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In view of the aforesaid, this Bench finds Since the conditions for withdrawal for CIRP u/s 12(A) and regulation 30(A) of Insolvency and

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SVR

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Bankruptcy Code Board of India (Insolvency Process for Corporate Persons) Regulations 2016 have been complete, this Bench has no objection for withdrawal of CIRP.

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Accordingly, the Corporate Debtor is brought out from the rigours of CIRP and the RP is directed to handover the charge of the Assets and Affairs of the Corporate Debtor back to the Suspended Members of the Board of Directors. RP is discharged from his duties.

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