Tribunal revokes order, releases company from insolvency process under Section 9

The Tribunal set aside the impugned order and withdrew the application under Section 9 of the Insolvency and Bankruptcy Code, releasing 'Shri Balaji Infradevelopers Private Limited' from the Corporate Insolvency Resolution Process. The Appellant agreed to pay the remaining fee to the Interim Resolution Professional and comply with settlement terms. Failure to make the payment could lead to revival of the Corporate Insolvency Resolution Process. The appeal was allowed with no costs, and the settlement agreements were to be kept on record.

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Issues:
Application under Section 9 of the Insolvency and Bankruptcy Code, 2016; Lack of documents to suggest debt payable; Settlement agreements and acknowledgments produced; Claims settled with various parties; Fees payable to Interim Resolution Professional; Setting aside the impugned order and withdrawal of application under Section 9; Release of Corporate Debtor from Corporate Insolvency Resolution Process; Payment to Interim Resolution Professional; Compliance with settlement terms; Revival of Corporate Insolvency Resolution Process if payment not made.

Analysis:
The judgment pertains to an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, where 'M/s Aanav Construction Co.' initiated Corporate Insolvency Resolution Process against 'Shri Balaji Infradevelopers Private Limited'. The Appellant raised concerns about the lack of documentation to prove the debt payable, highlighting only a Contract Agreement was enclosed in 'Form 5'. However, the Corporate Debtor had issued a Work Order and Work Completion Certificate, leading to settlement discussions due to the absence of a Committee of Creditors.

The Appellant submitted multiple settlement agreements and acknowledgments with various parties, including Tata Motors Finance Ltd., Akashganga Infraventures India Limited, and others. The Interim Resolution Professional confirmed the settlement with 11 claimants, indicating that the Promoters settled with all claimants as the Committee of Creditors was not constituted. The Interim Resolution Professional incurred costs amounting to approximately Rs. 1,25,000 towards various expenses and legal engagements.

Considering the settlements and payments made, the Appellant agreed to pay the remaining fee of Rs. 2,25,000 to the Interim Resolution Professional. The Tribunal, exercising powers under Rule 11 of the NCLAT Rules, 2016, set aside the impugned order and withdrew the application under Section 9. Consequently, 'Shri Balaji Infradevelopers Private Limited' was released from the Corporate Insolvency Resolution Process, with directions for the Interim Resolution Professional to hand over all assets to the Promoters.

The Appellant was directed to pay the outstanding amount to the Interim Resolution Professional within 15 days and comply with the terms and conditions of the settlements. Failure to make the payment would allow parties to seek revival of the Corporate Insolvency Resolution Process or initiate contempt proceedings. The appeal was allowed with no costs, and emails and settlement agreements produced were to be kept on record for reference.

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