2021 (6) TMI 1080 - AT - Insolvency and Bankruptcy

Tribunal grants appeal withdrawal and orders clarification on CoC constitution, emphasizing transparency and compliance

In the case, the Tribunal allowed the withdrawal of Company Appeal(AT)(Insolvency) No. 262 of 2021 at the request of the Appellant, leading to the ... Constitution of CoC - Committee of Creditors has not been constituted as yet, hence, it was ordered that the constitution of CoC to be put on hold till next date of hearing - HELD THAT:- Let the matter be fixed for consideration of impleadment application and for hearing on 3rd August, 2021. Issues involved:1. Withdrawal of Company Appeal(AT)(Insolvency) No. 262 of 20212. Constitution of Committee of Creditors (CoC) in Company Appeal(AT)(Insolvency) No. 128 of 2021Analysis:Issue 1: Withdrawal of Company Appeal(AT)(Insolvency) No. 262 of 2021In the case of Company Appeal(AT)(Insolvency) No. 262 of 2021, Mr. Vishnu Sharma, representing the Appellant, sought permission to withdraw the appeal on the instructions of his client. The Tribunal granted permission for the withdrawal, leading to the disposal of the appeal as withdrawn. This indicates that the Appellant voluntarily decided to withdraw the appeal, and the Tribunal accepted this request, thereby concluding the matter without further proceedings.Issue 2: Constitution of Committee of Creditors (CoC) in Company Appeal(AT)(Insolvency) No. 128 of 2021Regarding Company Appeal(AT)(Insolvency) No. 128 of 2021, it was brought to the attention of the Tribunal that the Resolution Professional (RP) had previously informed the Tribunal that the Committee of Creditors (CoC) had not been constituted by a certain date. However, it was later revealed that the CoC had indeed been constituted before the specified date. In response to this discrepancy, the RP was directed to file an affidavit clarifying the status of the Corporate Insolvency Resolution Process (CIRP) as of the mentioned date and the current status within a week. The pleadings were completed, and an impleadment application was scheduled for consideration on the next hearing date, set for 3rd August 2021. This indicates that the Tribunal sought clarification on the CoC's constitution timeline and required the RP to provide necessary information to ensure transparency and compliance with the insolvency proceedings.In conclusion, the judgment involved the withdrawal of one appeal and the scrutiny of the CoC's constitution status in another case, emphasizing the importance of accurate information and adherence to procedural requirements in insolvency matters.