TaxTMI 
TaxTMI 
2026 (8) TMI 1526
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...., Advocates. For the Respondents : Ms. Zeba Khan, Mr. Sourav Jain, Ms. Shreya Jain, Mr. Dripto Majumdar, Mr. Harshit Agrawal, Advocates for R2. ORDER [Per: Ajai Das Mehrotra, Member (Technical)] Company Appeal (AT) (Insolvency) No. 1366 of 2026 is filed against the order under Section 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to the 'IBC, 2016') dated 23.07.2026 of Ld. NCLT, Mumbai Bench-VI in CP (IB) No. 898/MB/2025 wherein M/s Epic Yarns Pvt. Ltd. (hereinafter referred to the 'Corporate Debtor' or 'CD') is admitted into Corporate Insolvency Resolution Process (hereinafter referred to the 'CIRP') and Klass Insolvency Resolution Professionals Pvt. Ltd. is appointed as the Interim Resolution Professional....
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....s returns up to 31.03.2025. The IRP, however, stated that control and custody of the Corporate Debtor have not yet been handed over by the Suspended Board of Directors to the IRP. The IRP as on date has received only one claim, from a statutory authority, namely, Employees Provident Fund Organisation (EPFO) amounting to Rs. 1,28,58,295/-. He submitted that as per Regulation 12 of the CIRP Regulation, the last date for verification and admission of claims is 13.08.2026 and the report certifying the constitution of the Committee of Creditors (hereinafter referred to the 'CoC') is required to be submitted by 15.08.2026. It is stated that in the meantime the IRP has received Form-A dated 06.08.2026 as prescribed under Regulation 30A along with ....
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....08.2026 by RTGS. It shall be relevant to consider para 6 and 7 of the settlement agreement, which records as under: "6) It is acknowledged by the Parties that the Company of the First Party being Epic Yarns Pvt. Ltd is presently undergoing the Corporate Insolvency Resolution Process pursuant to the order dated 23.07.2026 passed by the Hon'ble Adjudicating Authority, whereby a moratorium under the provisions of the Insolvency and Bankruptcy Code, 2016 has come into effect. The Parties further acknowledge and agree that any withdrawal or closure of the CIRP shall be subject to due compliance with the applicable provisions of the IBC, the rules and regulations framed thereunder, including the Insolvency and Bankruptcy Board of Ind....
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....y may allow the withdrawal of an application admitted under section 7, 9 or 10, on an application made by the resolution professional, with the approval of ninety per cent. voting share of the committee of creditors in such manner as may be specified. (2) Notwithstanding anything contained in any law for the time being in force, an application admitted under section 7, 9 or 10 shall not be withdrawn- (a) before the constitution of the committee of creditors under sub-section (1) of section 21; and (b) after the first invitation for submission of a resolution plan has been issued by the resolution professional. (3) The Adjudicating Authority shall pass an order under sub-section (1) within a period of thir....
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....settlement between the parties on 28.06.2025 prior to order date 30.06.2025 there were no debt existing for admission of Section 9 application hence we close the CIRP. Ld. Counsel for the appellant has undertaken to pay the fee of the IRP and expenses incurred by the IRP within two weeks from today." 4.6 We note that in the above cited case the settlement had taken place prior to initiation of CIRP whereas in the present case the settlement had taken place after the initiation of CIRP. The CIRP in the present case was initiated on 23.07.2026 whereas the settlement deed is dated 06.08.2026. Further the above cited case is prior to amendment of Section 12A of IBC, 2016. The procedure for withdrawal of application for CIRP has now been made....
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....d Adjudicating Authority but the same was not considered. 4. Appearing for the first respondent Shri. Raunak Satpathy, the learned counsel for the operational creditor, endorsed every statement of the counsel for the appellant. He submitted that the entire amount had been received even before the order under Sec. 9 was pronounced and, hence, on 26.03.2026, the first respondent had even taken out an application." 4.8 The facts of this above case are also not pari materia with the facts of the present case. In the cited case, the entire claim was paid and settlement deed was drawn even before the Corporate Debtor was admitted to CIRP. In fact, even an application was filed before the Ld. NCLT prior to pronouncement of order. In th....