TaxTMI 
TaxTMI 
2025 (7) TMI 1463
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....ompany appeal, and which has been passed by the Ld. NCLT Amaravati Bench in IA (IBC)/32/2025 in CP(IB)71/9/AMR/2020, the Ld. Adjudicating Authority, has proceeded to consider the implications of Section 12A of the I & B Code, 2016, to be read with Regulation 30A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and has allowed the aforesaid application and consequently has permitted the proceedings that were initiated under Section 9 of the I & B Code, 2016, to be dismissed as withdrawn. 3. The primary ground, which has been argued by the Ld. Counsel for the Appellant, is that the impugned order of 28.03.2025, has to be tested on an anvil of, as to whether at all it satisfies, the parameters that are prescribed under the Regulation 30A of IBBI (Insolvency Resolution Process from Corporate Persons) Regulation, 2016, for the purposes of passing of an order, under Section 12A. Besides that, he further contends that, the order, which has been passed, is based upon an arrangement/agreement which was obtained by the Respondent 2 through "threat" and "coercion", and hence the resultant order cannot be permitted to be sustained and be permitted to be perpet....
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....d above. 6. It has been attempted to be argued by the Ld. Counsel for the Appellant that in the absence of there being a satisfaction recorded with regards to the procedure contemplated under Regulation 30A of IBBI (Insolvency Resolution Process from Corporate Persons) Regulation, 2016, which he alleges to be mandatory, the orders which has been passed on the application preferred under Section 12A, for withdrawal of the proceedings under Section 9 the I & B Code, 2016, in the instant case, would be bad in the eyes of law. The Ld. Counsel for the Appellant, in support of his contention, had specifically drawn the attention of this Tribunal to Sub-Regulation (3) of Regulation 30A on which he has argued, which is extracted hereunder: - "30 A. Withdrawal of application. (1) An application for withdrawal under section 12A may be made to the Adjudicating Authority - (a) before the constitution of the committee, by the applicant through the interim resolution professional; (b) after the constitution of the committee, by the applicant through the interim resolution professional or the resolution professional, as the case may be: Provided tha....
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.... seeking withdrawal of the proceedings under Section 9 of the I & B Code, 2016, by invocation of the provisions contained under Section 12A of the I & B Code, 2016, when there is no such doubt regarding the existence of agreement settlement dated 02.01.2025. It was, of course, pleaded before the Hon'ble Apex Court, that the settlement agreement was obtained under force, coercion, and threat. Hon'ble Apex Court had ruled then that this matter would be adjudicated and decided in terms of the provisions of the I & B Code. Besides that, the judgment of the Hon'ble Apex Court dated 22.01.2025 had observed that the orders passed by this Tribunal on 18.12.2024 in Company Appeal (AT)(INS) No. 192/2022 and Company Appeal (AT)(INS) No. 193/2022, will not create any impediment as such in consideration of 12A application, in an independent consideration of Form - FA, for deciding as to whether or not the proceedings should be dropped in terms of Section 12A of the I & B Code, 2016, to be read with Regulation 30A of IBBI (Insolvency Resolution Process from Corporate Persons) Regulation, 2016. 9. In order to substantiate his argument pertaining to the act of 'threat' and 'coercion', the A....
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....e fact that the same was not permitted to be registered an FIR, he was not left remedy-less under law, that that eventuality the law did contemplate and provided him a remedy in form of invoking Section 173(4) of (BNS) Bharatiya Nyaya Sanhita (2023), or Section 156(3) of Cr.PC., (which is a pari materia provision) which provides for that in an eventuality of a failure by the police authority to register a complaint, such an aggrieved person will always have a remedy to file an appropriate application before the Magistrate concerned for seeking an appropriate directions for the police to register the FIR with regards to the set of allegations, which apparently and admittedly was not resorted to by him. 11. It is not the case of the Appellant at any point of time that, he has resorted to any of the remedies as contemplated under Section 173(4) of (BNS) Bharatiya Nyaya Sanhita (2023), (corresponding provisions contained under Section 156(3) of the Code of Criminal Procedure). Hence, the contention, which has been raised at the behest of the Appellant that, he attempted to register a complaint qua the illegal action of submission of the settlement on 02.01.2025 by commission of an a....
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....as submitted to the Prime Minister's office happens to be prior in time to the date of submission of application itself under Section 12A of the I & B Code, 2016, besides being a procedure unknown to law. Hence, it cannot be said that the act of fraud, threat, or coercion could have at all been settled to be constituted as to be an element of the complaint dated 12.12.2024. 15. Reverting back to the argument that was extended by the Ld. Counsel for the Appellant pertaining to the legal parameters required for establishment of an act of threat or coercion under the IPC, it entails consideration of the commission of an act of coercion or threatening to commit an act which has been forbidden by the Indian Penal Code or an unlawful detention or threatening to detain any person or a forceful performance of an act. It always requires an element of trial and establishment of the same by a process of investigation and leading of evidence or an adjudication to be made by the court of law. Admittedly, in the instant case, after filing of the complaint, the Appellant has not made any effort towards resorting to the appropriate recourse prescribed under law to establish the alleged act ....