Allowed

In the matter of Jvr Forgings Ltd. [Ia No. 262 & 391-2024 and Company Appeal (IBC)-487(CH)2019 in C.P. (IB)-36(CH)2018]

NCLT14 Feb 2024IA No. 262 & 391-2024 and Company Appeal (IBC)-487(CH)2019 in C.P. (IB)-36(CH)2018

Case brief

AI extract

What is this about?

The Tribunal approved the withdrawal of the Coordinated CIRP application based on a settlement agreement between the Financial Creditor and the Corp Debtor. The CoC had approved the withdrawal by 100% voting share, which was accepted by the bench. The designated case was dismissed as withdrawn.

What did the court decide?

Approval of the Corporate Insolvency Resolution Process (CIRP) withdrawal; dismissal of the main petition; discharge of Resolution Professional; restoration of suspended Board.

In the matter of Jvr Forgings Ltd. [Ia No. 262… — Insolvency and Bankruptcy | NCLT (2024)

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IN THE NATIONAL COMPANY LAW TRIBUNAL CHANDIGARH (COURT – II)

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(Through Hybrid Mode)

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Item No. 121 IA No. 391/2024 IA(I.B.C)/262(CH)2024 And COMP.APPL.(IBC)/487(CH)2019 In C.P. (IB)/36(CH)2018 (Admitted) IN THE MATTER OF: Allahabad Bank … Petitioner-Financial Creditor Versus JVR Forgings Ltd. … Respondent-Corporate Debtor Under Section: 7, 12A, 60(5), IBC 2016 Order delivered on 14.02.2024

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CORAM: SHRI. L. N. GUPTA, SHRI. HARNAM SINGH THAKUR, HON’BLE MEMBER (T) HON’BLE MEMBER (J) PRESENT: For the Petitioner : Mr. Manish Jain, Advocate For the Suspended : Mr. Anand Chhibbar, Senior Advocate with Mr. Board of Director Shikhar Sarin, Advocate & Ms. Swati Vashisht, : PCA for the Applicant-RP : Mr. G.S. Sarin, PCS in IA Nos. 262/2024 & CA No.487/2019. For the SRA. : Dr. Rajansh Thukral, Advocate

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ORDER

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Item taken up on urgent mentioning before dealing with Item No.101 to 108.

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IA No. 391/2024

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This IA No. 391/2024 has been filed by RP with the following prayer:-

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i. Allow the present application and approve the withdrawal of the application for approval of the Resolution Plan (CA No.487/2019)

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February 14, 2024 Mamta

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pending before this Adjudicating Authority as the same being approved by COC with 100% voting share in 17^th COC meeting held on 09.02.2024, on the grounds of settlement agreement duly executed between the Phoenix Arc Pvt. Ltd. And the Director (power suspended) of the Corporate Debtor and for withdrawal of resolution plan application;

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On being asked for the logic of withdrawal, the Ld. Authorized Representative representing RP indicated that the settlement amount of (Rs.60 crores) is more than the size of the Resolution Plan. In the light of the averments made in the application and approval granted by the CoC with 100% voting share (17^th meeting dated 09.02.2024 in Agenda Item No.17.04), IA No.391/2024 is allowed and disposed of accordingly.

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IA(I.B.C)/262(CH)2024

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This application has been filed by RP with the following prayers:-

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i. Allow the present application and approve the withdrawal of the petition bearing CP(IB) No.36/Chd/Pb/2018 under Section 7 of the Code admitted on 12.09.2018, on the grounds of settlement agreement duly executed between the parties and approval granted by the CoC with 100% voting share for withdrawal of CIRP application;

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ii. Resolution Professional may kindly be discharged from the duties;

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iii. Suspended Board for the Corporate Debtor may kindly be restored;

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February 14, 2024 Mamta

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iv. Pass any such order/order(s) as may be deemed fit and proper in the facts and circumstances of the instant case.

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In this application, the RP referred to Form FA on page No. 228 (Annexure-25) which is duly signed by the petitioner i.e. Phoenix Arc Pvt. Ltd. He further submitted that there is no problem in payment of the fee of RP. He also referred to the Resolution of the 10^th CoC Meeting dated 10.01.2024, item No.16.04 on page No.233, which was passed by the COC with 100% voting. Thus, CoC has approved the Resolution for withdrawal of the main petition with 100% voting which is annexed at page No. 244 of the present application. In view of this, the present application bearing IA No.262/2024 is allowed and the petition being CP(IB) No.36/Chd/Pb/2018 is dismissed as withdrawn . As a consequence, moratorium declared under Section 14 of the Code comes to an end and the corporate debtor is released from the rigours of the CIRP. Henceforth, the RP is discharged and the Board of Directors is restored to its original position. The files may be consigned to the record room.

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COMP.APPL.(IBC)/487(CH)2019

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In view of the order passed in IA No.391/2024, CA No.487/2019 is

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rendered infructuous and disposed of accordingly.

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Sd/Sd/(L. N. GUPTA) (HARNAM SINGH THAKUR) HON’BLE MEMBER (T) HON’BLE MEMBER (J)

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February 14, 2024 Mamta