2025 (5) TMI 2300

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....ion of an application filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 ('Code') for the resolution of an amount of Rs. 1,97,28,033/- as on 18.11.2021. 2. At the time of issuance of notice in the appeal on 11.09.2024, it was directed that "In the meantime, impugned Order shall remain stayed." 3. Counsel for the Appellant has submitted that during the pendency of this appeal, the parties have entered into a settlement pursuant to which an I.A. No. 1629/2025 has been filed before the National Company Law Tribunal, New Delhi, Court No. IV ('Tribunal') for closing the CIRP proceeding in view of the settlement. He has produced the order dated 15.04.2025 of the Tribunal which is reproduced as under :- "IA/ 1629/2025 ....

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....e abuse of the process of the Court. The relevant observations are reproduced hereinbelow: "70. When a procedure has been prescribed for a particular purpose exhaustively, no power shall be exercised otherwise than in the manner prescribed by the said provisions. In such cases, the court must be circumspect in invoking its 'inherent powers' to deviate from the prescribed procedure. If such deviation is made, the court must justify why this was necessary to "prevent the abuse of the process of the Court". 71. The need to be circumspect while invoking "inherent powers", when there is an exhaustive legal framework is amplified in the context of a legislation like the IBC. In Ebix Singapore (P) Ltd. v. Educomp Solution....

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....e Court would be well-within its prerogative to exercise them to secure the object of the BC, 2016. If the proposition that there ought to be no exercise of the inherent powers where a procedure is laid down were to be blanketly accepted then it may have a very chilling effect whereby the very purpose of vesting this Court with inherent powers under Article 142 and Tribunals with Rule 11 of the NCLT Rules would be rendered otiose and meaningless." Learned Counsel for the Creditor submitted that he is supporting the application preferred by the Corporate Debtor and the application may be disposed as withdrawn. Let the Non Applicant/ Creditor file an affidavit within one week. Learned Counsel for the Corporate Debtor should also file....