Settlement under Insolvency and Bankruptcy Code - appeal relegated to statutory settlement process; interim stay continues until decision.

Appeal challenging admission of an insolvency petition is disposed by relegating the appellant to pursue settlement through the Code's statutory settlement procedure; the Tribunal permits the appellant to file an application before the Adjudicating Authority/Tribunal for disposal of the settlement under the applicable regulations and recent guidance. The Tribunal also directed that the interim stay previously granted in the appeal shall continue to operate until the settlement application is finally decided, thereby preserving interim relief pending formal adjudication of the settlement application.

---

---

Issues: Whether the appeal should be disposed by relegating the appellant to seek settlement in accordance with the Insolvency and Bankruptcy Code, 2016 and whether the interim stay granted in the appeal should continue until the settlement application is decided.

Analysis: The appeal challenges admission of a Section 7 application under the Insolvency and Bankruptcy Code, 2016. The parties have executed a settlement agreement and the appellant proposes to seek appropriate relief in terms of the Code and applicable regulations, having regard to recent guidance in Glas Trust Company LLC vs. Byju Raveendran & Ors. The Tribunal notes that the parties are pursuing settlement and that an interim order was earlier granted in this appeal and corrected. The Court therefore allows the appellant to apply to the Adjudicating Authority/Tribunal for disposal of the settlement in accordance with the statutory scheme and regulations; meanwhile the previously granted interim stay shall continue to operate until the settlement application is finally disposed of by the Tribunal.

Conclusion: The appeal is disposed by relegating the appellant to file an appropriate application for settlement under the Insolvency and Bankruptcy Code, 2016 and the interim stay previously granted in this appeal shall continue to operate until the settlement application is decided by the Tribunal.

---