Tribunal dismisses appeal challenging liquidation initiation & CIRP closure, upholding CoC consent requirement.

The appeal was dismissed as the Tribunal affirmed the Adjudicating Authority's order rejecting the Appellant's challenge to the initiation of the liquidation process under Section 33(2) and the application to close the CIRP under Section 12A. The Tribunal found that the Appellant's restructuring proposal did not qualify as a Section 12A settlement application due to lack of 90% CoC consent, as required by the law. The rejection was upheld, emphasizing that the CoC was already considering Resolution Plans, making the Appellant's proposal ineligible for Section 12A consideration.

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Issues involved:
1. Challenge to order allowing liquidation process initiation u/s 33(2)
2. Rejection of application for closing CIRP under Section 12A

Issue 1 - Liquidation Process Initiation:
The Appellant challenged the order allowing the initiation of the liquidation process under Section 33(2) and the rejection of their application to close the CIRP under Section 12A. The Appellant's application u/s 12A sought various reliefs, including production of CoC meeting minutes, closing of CIRP by treating it as withdrawn under Section 12A, stay on further proceedings, and any other suitable order. The Adjudicating Authority noted that since the 12A application was not filed by the IRP, it could not be entertained. The Appellant's Counsel argued that the application was rejected on technical grounds without considering its merits. The Tribunal reviewed the submissions and records, emphasizing that Section 12A allows withdrawal of applications admitted u/s 7, 9, or 10 with 90% CoC approval. In this case, as the CoC was already constituted and considering Resolution Plans, the Appellant's restructuring proposal did not qualify as a Section 12A settlement application. The Tribunal found no error in the rejection as there was no 90% CoC consent for the Appellant's 12A proposal. Therefore, the appeal was dismissed, affirming the Adjudicating Authority's order.

Issue 2 - Application under Section 12A:
The Adjudicating Authority rejected the Appellant's application under Section 12A, which was based on a restructuring proposal submitted by the Appellant. The Tribunal clarified that the CoC had already considered and rejected a 12A proposal by another party in its 30th meeting. As per Section 12A of the IBC, withdrawal of applications admitted under Sections 7, 9, or 10 can be allowed by the Adjudicating Authority with 90% CoC approval. In this case, the Tribunal determined that the Appellant's restructuring proposal did not meet the criteria for a Section 12A application, as it was not supported by 90% CoC consent. The rejection of the Appellant's application was upheld, and the Tribunal found no error in the Adjudicating Authority's decision.

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