Case Note & Summary
The appeal was filed by Vyanka Tesh Kulkarni, the suspended director of Manas Vyapar Pvt. Ltd., against an order dated 29.10.2024 passed by the Adjudicating Authority (NCLT) admitting a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Kataria Infrastructure Corporation & Anr. and initiating Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The appellant submitted that the only claim made by the respondent was Rs. 1 crore and expressed willingness to pay that amount without prejudice to its rights. The appellant had already brought a Demand Draft of Rs. 1 crore. The respondent's counsel suggested that the appellant should put a proposal before the Committee of Creditors (CoC) and then file an application under Section 12A of the IBC, and also be ready to pay CIRP costs as directed by the impugned order. The appellant's counsel sought instructions and indicated inclination to deposit the money with the CoC and file a Section 12A application. The Tribunal granted three weeks' time to do the needful and kept the impugned order in abeyance until the next date of hearing. The matter was listed for 06.02.2025. The appellant had already e-filed an additional affidavit, which was directed to be filed in hard copy and placed on record with a copy to the respondent.
Headnote
A) Insolvency and Bankruptcy Code - Section 9 Admission - Settlement - The appeal challenged the admission of a Section 9 petition and initiation of CIRP against the corporate debtor. The appellant offered to pay the claimed amount of Rs. 1 crore and sought time to file a Section 12A application. The Tribunal kept the impugned order in abeyance for three weeks to allow the appellant to deposit the amount with the CoC and file the application. (Paras 1-2)
Issue of Consideration
Whether the impugned order admitting the Section 9 petition and initiating CIRP should be stayed to allow the appellant to settle the claim and file an application under Section 12A of the IBC.
Final Decision
The impugned order is kept in abeyance for three weeks to allow the appellant to deposit Rs. 1 crore with the CoC and file an application under Section 12A of the IBC. List on 06.02.2025.
Law Points
- Settlement under Section 12A of IBC
- Withdrawal of CIRP upon settlement
- Interim stay of CIRP pending settlement
