Insolvency Process Closed After Settlement; Creditor to Pay IRP Fees or Face Consequences.

The court set aside the order admitting the Section 9 Application and closed the Corporate Insolvency Resolution Process (CIRP) following a settlement between the Corporate Debtor and the Operational Creditor. The Operational Creditor confirmed receipt of the agreed payment, leading to the closure of the CIRP. Additionally, the court directed the Operational Creditor to pay Rs. 2 Lakh to the Interim Resolution Professional (IRP) within three weeks to cover fees and expenses, warning of potential consequences for non-payment.

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Appeal against the Adjudicating Authority's admission of a Section 9 application by the Operational Creditor was contested by the Suspended Director of the Corporate Debtor. Parties reached a settlement on the sum payable, with proof of transmission of funds placed on record and the Operational Creditor confirming receipt. An interim order had stayed the impugned order pending payment, noting the parties' settlement and directing listing; the tribunal recorded: "In view of the aforesaid, we direct this Appeal to be listed on 10.11.2023. In the meantime, order impugned dated 12.10.2023 shall remain stayed." The tribunal held that, since payment had been effected, "we see no reason in continuing the Corporate Insolvency Resolution Process any further." The Adjudicating Authority's order admitting the Section 9 petition was set aside; the CIRP was closed. IRP to receive Rs. 2 lakh by bank draft from the Operational Creditor within three weeks to cover fees and expenses.

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