Case Note & Summary
The National Company Law Appellate Tribunal addressed an appeal concerning the Corporate Insolvency Resolution Process (CIRP) of a corporate debtor. The appellant, Nishant Avinash Fadia, contested the continuation of the CIRP initiated against Raspalfa Services Private Limited. The tribunal noted that a public announcement was made on 08.05.2026, but the Interim Resolution Professional (IRP) reported no claims had been received as of the date of the affidavit. The tribunal referenced a previous case, 'Rajeev Goyal v. Sankalp Siddhi Developers Pvt. Ltd.', where similar circumstances led to the closure of the CIRP. The tribunal concluded that, given the lack of claims and a settlement between the parties, there was no reason to continue the CIRP. Consequently, the CIRP was closed, and the impugned order was set aside. The appellant's request to remove the bank's lien on a fixed deposit was also granted, allowing for disbursement of funds according to the Discharge Agreements dated 01.07.2026. The appeal was disposed of, and pending applications were also resolved.
Headnote
A) Insolvency Law - Closure of CIRP - Lack of Claims - Insolvency and Bankruptcy Code, 2016, Section Not mentioned - The tribunal found that no claims were received despite the public announcement, and a settlement was reached between the parties, leading to the conclusion that there was no impediment to closing the CIRP. Held that the CIRP of the corporate debtor was to be closed (Paras 3-4).
Issue of Consideration
Whether the Corporate Insolvency Resolution Process (CIRP) should be closed due to the absence of claims and a settlement between the parties.
Final Decision
The tribunal ordered the closure of the CIRP and set aside the impugned order, allowing the removal of the bank's lien on the fixed deposit and directing disbursement of funds as per the Discharge Agreements dated 01.07.2026.
Law Points
- Corporate Insolvency Resolution Process
- closure of CIRP
- inherent powers of tribunal
- settlement between parties
