TaxTMI 
TaxTMI 
2019 (7) TMI 1706
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....) of the Insolvency and Bankruptcy Code, 2016 stating infer-alia that the settlement has been arrived at between the Parties i.e. the Corporate Debtor and the 1CICI Bank being a sole Financial Creditor on 24.05.2019 and such One Time Settlement (OTS) has been accepted and reduced in writing by way of a deed of settlement dated 24.05.2019. 3. Pursuant to such settlement, the Bank being sole member of the CoC duly communicated its decision to the RP through its letter dated 30.05.2019. The relevant extract of the present CA is being reproduced herein below :- "We write in reference to the on-going corporate insolvency resolution process (CIRP) of Dhrovv India Limited (Corporate Debtor) under the Insolvency and Bankruptcy Code, 201....
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....orate Debtor, as represented by the majority shareholders of the Corporate Debtor, ICICI Bank, constituting 100% of the committee of creditors, request you to take appropriate steps to have the liquidation application and the ongoing CIRP of the Corporate Debtor withdrawn." 4. It is also informed that the above referred settlement has been approved with the 100% majority of member of the CoC (i.e. ICICI Bank) which is prior to completion of the CIRP of 270 days, hence which is in order. Thus, the sole member of the CoC made request to the RP to withdraw the liquidation application and to recall the ongoing CIRP of the Corporate Debtor. 5. In respect of above said settlement, we heard the submission of learned counsel representing the ....
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....8. Hence, the present CA No.13/2019 seeking for liquidation of the Corporate Debtor Company was filed before this Bench of NCLT on 18.01.2019, the same is still pending. Meanwhile, as a subsequent development took place, the CoC now reports its settlement with the Corporate Debtor Company with the approval of its 100% majority and now praying for the withdrawal of the liquidation application as well as to recall the CIRP. The RP as well as the CoC in its application has stated that such settlement is bonafide and reasonable, it shall maximize the value of the Corporate Debtor Company, hence, there remains no further necessity that company must go for liquidation because the main object and theme of the present IB Code is to seek a viable re....
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.... reads as under: "(32. Sale of Assets, etc. The liquidator may sell (a) An asset... (b) The assets.... Xxxxxxx (e) the Corporate Debtor as a going concern; or (f) the business(es) of the corporate debtor as a going concern: PROVIDED that where an asset is subject to security interest, it shall not he sold under any of the clauses (a) to (j) unless the security interest therein has been relinquished to the liquidation estate." 11. Moreover, the Hon'ble Supreme Court in its judgment of Arcelormittal India Private Vs. Satish Kumar Gupta has observed that "we cannot forget the consequence of the chopper filing is corporate death." There the only reasonable construction of the....
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.... the corporate insolvency resolution process. If there is a resolution applicant who can continue to run the corporate debtor as a going concern, every effort must be made to see that this is made possible." 12. By taking into the consideration the above stated legal position and by following the above stated judicial precedents, we are of the view that the present application (CA No. 196/2019) deserves to be allowed. Hence, the CA No. 196/2019 is allowed in terms of its prayer clause. Consequently, the liquidation application (CA No.13/2019) stands withdrawn. 13. Since, the settlement has been arrived at between the Corporate Debtor and the sole Financial Creditor with 100% majority of the CoC, no further requirement to keep continue....