Appeal settled, Section 9 application quashed, Corporate Debtor to operate independently.

The appeal was disposed of as settled following a Settlement Agreement between the parties. The impugned order admitting the application under Section 9 of the Insolvency and Bankruptcy Code was quashed, and the original application was treated as withdrawn. Consequently, all related orders were set aside, allowing the Corporate Debtor to operate independently through its Board of Directors, with the Interim Resolution Professional instructed to hand over charge.

---

---

Issues Involved:
1. Admission of Application under Section 9 of the Insolvency and Bankruptcy Code (IBC).
2. Settlement Agreement between the parties.
3. Payment of Corporate Insolvency Resolution Process (CIRP) costs and fees.
4. Withdrawal of the original application and quashing of the impugned order.

Issue-wise Detailed Analysis:

1. Admission of Application under Section 9 of the Insolvency and Bankruptcy Code (IBC):
The appeal was filed by a shareholder of the Corporate Debtor against the order dated 29th August 2019, where the Adjudicating Authority (NCLT, Mumbai Bench) admitted the application under Section 9 of the IBC filed by the Operational Creditor. The Operational Creditor, undergoing its own Corporate Insolvency Resolution Process (CIRP) and now in liquidation, filed the application through its Liquidator.

2. Settlement Agreement between the parties:
The appellant and the Corporate Debtor settled the dispute, and a Settlement Agreement was entered into on 19th July 2021. The agreement outlined the terms of settlement, including the payment of Rs. 6.50 Crores by the First Party (Edwell Infrastructure Hazira Limited) towards full and final settlement of the alleged outstanding dues. The settlement amounts were transferred to the designated account of the Liquidator, and the agreement was binding on both parties.

3. Payment of Corporate Insolvency Resolution Process (CIRP) costs and fees:
The appellant agreed to bear the CIRP costs and the fees of the Interim Resolution Professional (IRP). The IRP confirmed receipt of these payments and issued a No Dues Certificate. Despite some doubts expressed by the Original Petitioner regarding the amount paid towards CIRP costs and fees, the tribunal found no substance in these doubts, as the documents provided sufficient particulars of the expenses incurred by the IRP.

4. Withdrawal of the original application and quashing of the impugned order:
The tribunal, after considering the settlement and the submissions made, disposed of the appeal as settled. The impugned order was quashed and set aside, and the original application filed before the Adjudicating Authority was treated as withdrawn. Consequently, all orders passed by the Adjudicating Authority, including the appointment of the IRP, declaration of moratorium, and freezing of accounts, were set aside. The Corporate Debtor was released from all legal rigors and allowed to function independently through its Board of Directors. The IRP was directed to hand over charge to the Corporate Debtor's Board of Directors.

---