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Tribunal Refuses Intervention, Directs Asset Handover & Bank Ops, Allows IRP to Proceed The National Company Law Appellate Tribunal, New Delhi, declined to interfere in the appeal despite a settlement between the parties, as an Intervention ...
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Tribunal Refuses Intervention, Directs Asset Handover & Bank Ops, Allows IRP to Proceed
The National Company Law Appellate Tribunal, New Delhi, declined to interfere in the appeal despite a settlement between the parties, as an Intervention Application by a creditor was pending. The Tribunal directed the handing over of assets and records of the Corporate Debtor and outlined procedures for bank account operations. It allowed the IRP to proceed with CIRP but postponed constituting the Committee of Creditors. Parties were given time to settle under Section 12-A of IBC, emphasizing prompt decision-making. The Tribunal scheduled an 'Admission Hearing' and provided detailed directives for orderly resolution of the case.
Issues involved: Settlement of disputes, intervention application by a creditor, quashing of impugned order, handing over assets and records of the corporate debtor, operation of bank accounts, stay on publication, Section 12-A of IBC proceedings.
The judgment by the National Company Law Appellate Tribunal, New Delhi, involved various key issues. Firstly, the parties had settled their disputes, leading to a request to quash the Impugned Order due to the settlement. However, an Intervention Application was made by a creditor, the Central Bank of India, which had an outstanding debt against the Corporate Debtor. The Intervenor opposed the settlement, arguing that the Corporate Debtor cannot settle with only one of the Creditors. The Tribunal considered the settlement request but decided not to interfere in the appeal, leaving it for the Adjudicating Authority to handle when other creditors are involved.
Regarding the handing over of assets and records of the Corporate Debtor, the Tribunal directed the Appellant, Directors, and Shareholders to do so immediately if not yet handed over. The Interim Resolution Professional was tasked with ensuring the Company remains a going concern, with assistance from the suspended Board of Directors and officers. The Tribunal outlined specific procedures for the operation of bank accounts, including authorization for cheque signing by the Interim Resolution Professional.
Additionally, the Tribunal addressed the stay on publication, allowing the IRP to proceed with Corporate Insolvency Resolution Process (CIRP) but refraining from constituting the Committee of Creditors until the matter is reviewed further. The parties were given time to settle under Section 12-A of IBC before the next hearing date. The Tribunal emphasized the importance of expeditiously handling applications under Section 12-A of IBC to be decided promptly by the Adjudicating Authority.
In conclusion, the Tribunal set a date for the Appeal 'For Admission (After notice)' Hearing and provided detailed instructions and directives to ensure the orderly resolution of the issues at hand in compliance with the relevant legal provisions and rules.
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