CIRP closure despite infeasible statutory withdrawal is permitted after creditor settlements, with insolvency costs determined and paid separately.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Closure of CIRP may be ordered where withdrawal under section 12A read with Regulation 30A is infeasible because CIRP costs remain uncrystallised and Form FA and a bank guarantee cannot be furnished. Where all creditor claims are settled or covered by accepted full-and-final settlements, no resolution plan exists, and the appellant undertakes to pay CIRP costs as determined, continuing CIRP serves no insolvency-resolution purpose and only increases costs. CIRP was closed subject to payment of the operational creditor's agreed settlement and CIRP costs following determination by the Adjudicating Authority.....