Insolvency Tribunal Dismisses Relief Applications, Upholds CIRP Orders

The Tribunal dismissed three applications seeking relief from insolvency proceedings due to lack of merit and non-maintainability under relevant rules. The applications included requests to be relieved from the insolvency proceedings, restore the status quo ante, dissolve the Corporate Insolvency Resolution Process (CIRP), and direct the Resolution Professional to accept a belated Expression of Interest. The Tribunal emphasized that appeals should have been made to the NCLAT and found no merit in the relief sought, ultimately upholding the orders passed in the insolvency proceedings.

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Issues involved:
1. Relief sought by the erstwhile Board of Directors to be relieved from the rigors of the Code due to a stale debt.
2. Application to restore the status quo ante and dissolve the CIRP initiated for the Corporate Debtor.
3. Application to direct the Resolution Professional to accept an Expression of Interest and stay the operation of the Committee of Creditors meeting.

Analysis:
1. The erstwhile Board of Directors filed two applications seeking relief from the insolvency proceedings due to a stale debt. The Tribunal noted that the subsequent application was not numbered as the reliefs sought were the same in both applications. The Tribunal dismissed the application as it was beyond the scope of the IBC, emphasizing that any appeal should have been made to the NCLAT.

2. Another application was filed to restore the status quo ante and dissolve the CIRP initiated for the Corporate Debtor. The Tribunal considered detailed arguments from both parties but ultimately found no merit in the relief sought. The Respondent bank contended that the relief was not maintainable under the NCLT Rules, leading to the dismissal of the application.

3. A separate application was made to direct the Resolution Professional to accept an Expression of Interest belatedly submitted by the Applicant. The Applicant claimed that despite expressing interest, no communication was received from the RP. However, the CoC had already decided on liquidation, rendering the application meritless. The Tribunal dismissed this application in view of the liquidation order passed in a related matter.

In conclusion, the Tribunal dismissed all three applications - IA/652/IB/2020, SR. No. 824/2020, and IA/552/IB/2020 - due to lack of merit and non-maintainability under the relevant rules. The decisions were based on the specific legal provisions and the circumstances surrounding the applications, ultimately upholding the orders passed in the insolvency proceedings.

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