Allowed

In the matter of Viraaj Projects (India) Private Limited [Ia 2857-2023 in C.P. (IB)-4302(MB)2019]

NCLT10 Jul 2023IA 2857-2023 in C.P. (IB)-4302(MB)2019

Case brief

AI extract

What is this about?

The tribunal allowed an application for withdrawal of CIRP proceedings against the corporate debtor after the applicant succeeded in settling the full claim and all associated costs with the operational creditor. The corporate debtor is now free from IBC proceedings, and assets were directed to be handed over to suspended directors.

What did the court decide?

Withdrawal of CIRP proceedings allowed; applicant directed to handover all assets, records, and effects to suspended directors forthwith.

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

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NATIONAL COMPANY LAW TRIBUNAL COURT-I, MUMBAI BENCH

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Item No. 6

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IA 2857/2023 (NEW IA) in C.P. (IB)/4302(MB)2019

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CORAM:

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MS. ANU JAGMOHAN SINGH SH. H. V. SUBBA RAO HON’BLE MEMBER (TECHNICAL) HON’BLE MEMBER (JUDICIAL)

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ORDER SHEET OF THE HEARING ON 10.07.2023

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NAME OF THE PARTIES: MAHESH HARDWARE AND PIPES PRIVATE LIMITED VS VIRAJ PROJECTS INDIA PRIVATE LIMITED

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Section 9 & 12A of the Insolvency and Bankruptcy Code, 2016

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________________________________________________________________

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ORDER

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IA 2857/2023

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Mr. Manoj Kumar Mishra, Ld. Counsel for the Applicant is present. The present Interlocutory Application has been filed by the Applicant under Section 12A for withdrawal of the Corporate Insolvency Resolution Process of the Corporate Debtor. It is observed that the Corporate Debtor was admitted into Corporate Insolvency Resolution Process vide an order of this Bench dt. 28.06.2023, and the Applicant herein was appointed as the Interim Resolution Professional of the Corporate Debtor. Thereafter, post rounds of settlement talks, the Operational Creditor and the Corporate Debtor agreed to amicably settle the entire claim for the tune of Rs. 22,50,000/- as full and final settlement. It is submitted that the

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Applicant herein was intimated about the initiation of CIRP only on 01.07.2023,

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on which date the settlement between the Parties had already been entered and in the backdrop of the settlement, the Operational Creditor requested the Applicant not to make any newspaper publication and to initiate appropriate steps for withdrawal of the CIRP proceedings. In that view of the matter, the Applicant herein at present not constituted the Committee of Creditors and no public announcement has been issued till date.

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It is submitted that an amount to the tune of Rs. 22,50,000/- as full and final settlement amount along with payment of Rs. 25,000/- towards lawyer’s fees together with Rs. 1,35,000/- towards professional fees and other expenses, including all CIRP costs, expenses and professional fees, incurred till date, have been settled. The Operational Creditor has also submitted the Form FA, for withdrawal of the CIRP proceedings against the Corporate Debtor. Counsel therefore submits that as on date, there stands no outstanding amount to be paid towards CIRP costs, expenses and fees and thus, the Bank Guarantee, being not Applicable and has not been attached to the Form FA. Hence, this Application. Having considered the submissions and on perusal of the averments made in the present Interlocutory Application, this Bench is of the considered view that the present Interlocutory Application bearing IA No. 2857 of 2023, is in consonance with Section 12A of the Code and is liable to be allowed and the same is allowed, thereby allowing the Applicant to withdraw the Corporate Insolvency Resolution Process against the Corporate Debtor, Viraj Projects India Private Limited. Now the Corporate Debtor is free from all the clutches and rigors of Corporate

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Insolvency Resolution Process. The Applicant herein is directed to handover all the assets, records and effects whatever available with him in the physical or electro format to the suspended Directors of the Corporate Debtor forthwith. Resultantly, the main Company Petition bearing CP (IB) No. 4302 of 2019, stands disposed of. In view of the withdrawal of the main Company Petition, all the pending Interlocutory Applications, if any, arising out of the present Company Petition, stands closed. File be consigned to records.

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Sd/-

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ANU JAGMOHAN SINGH MEMBER (TECHNICAL)

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Sd/-

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H. V. SUBBA RAO MEMBER (JUDICIAL)

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Vedant Kedare

In the matter of Viraaj Projects (India) Private Limited [Ia 2857-2023 in C.P. (IB)-4302(MB)2019]

Case brief

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In the matter of Viraaj Projects (India) Private Limited [Ia 2857-2023 in C.P. (IB)-4302(MB)2019]

Case brief

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