Case Note & Summary
The dispute arose between the suspended director of Krux Pharma Pvt. Ltd. and Orbit Lifescience Pvt. Ltd. regarding a debt owed by the Appellant. The Appellant sought to terminate the Corporate Insolvency Resolution Process (CIRP) initiated against him. During the proceedings, both parties presented consent terms indicating that they had amicably settled their dispute, although the debt had not been fully discharged at that time. The Respondent No. 1, while acknowledging the settlement, indicated no objection to the appeal being allowed. The IRP confirmed willingness to abide by the tribunal's order. The tribunal noted the amicable settlement and the absence of objection from the Respondent No. 1, leading to the decision to dispose of the appeal. The tribunal directed both parties to prepare and submit Form FA to the IRP, who would then collate the claims and constitute the Committee of Creditors (CoC) within a specified timeframe. The tribunal also requested the Adjudicating Authority to expedite the disposal of the application under Section 12A of the Insolvency and Bankruptcy Code, 2016. The appeal was ultimately disposed of, with a provision allowing the Respondent No. 1 to revive the appeal if the settlement terms were not complied with.
Headnote
A) Insolvency Law - Amicable Settlement - Termination of CIRP - Insolvency and Bankruptcy Code, 2016, Section 12A - The parties reached an amicable settlement regarding the debt owed by the Appellant to the Respondent No. 1, leading to the request for termination of the Corporate Insolvency Resolution Process initiated against the Appellant. The court acknowledged the settlement and directed the necessary procedural steps to be taken for its implementation. Held that the appeal was disposed of in light of the settlement (Paras 2-10).
Issue of Consideration
Whether the appeal should be allowed based on the amicable settlement between the parties.
Final Decision
The appeal was disposed of with directions for the parties to prepare Form FA and submit it to the IRP, who would collate claims and constitute the CoC. The tribunal also requested the Adjudicating Authority to expedite the disposal of the application under Section 12A.
Law Points
- amicable settlement
- consent terms
- Corporate Insolvency Resolution Process
- Section 12A
- claim collation
