Settlement after full payment led to closure of insolvency proceedings and setting aside of the section 9 admission order.

Settlement and full payment of the operational creditor's dues rendered continuation of the corporate insolvency resolution process unnecessary. The parties recorded that the settlement amount had been finalised and paid, and the operational creditor confirmed receipt of the entire payment. On that basis, the NCLAT set aside the order admitting the section 9 application and closed the corporate insolvency resolution process. The order also directed that the amount of Rs. 2 lakh payable to the interim resolution professional towards fee and expenses be made by the operational creditor within the stipulated time.

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Issues: Whether the admission of the section 9 application and the resulting corporate insolvency resolution process should be interfered with after settlement and full payment of the operational creditor's dues.

Analysis: The parties placed on record that the settlement amount had been finalised and paid, and the operational creditor confirmed receipt of the entire payment. In these circumstances, continuation of the corporate insolvency resolution process served no further purpose. The pending requirement regarding payment of Rs. 2 lakh to the interim resolution professional was directed to be made by the operational creditor within the stipulated time towards fee and expenses.

Conclusion: The impugned order admitting the section 9 application was set aside and the corporate insolvency resolution process was closed, in favour of the appellant.

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