CIRP cannot be Initiated Against Jaypee Healthcare Ltd After Full Settlement of Financial Creditors' Claims: NCLAT [Read Order]
It was observed that since period for payment is 30 days only, all Stakeholders including the IRP, CoC, Corporate Debtor and holding Company shall render all assistance to complete the process as per the terms and conditions
NCLAT – CIRP – Jaypee Healthcare Ltd – Financial Creditors – Full Settlement of Creditors Claim – Taxscan
NCLAT – CIRP – Jaypee Healthcare Ltd – Financial Creditors – Full Settlement of Creditors Claim – Taxscan
The Delhi bench of the National Company Law Appellate Tribunal ( NCLAT ) has set aside the Corporate Insolvency Resolution Process ( CIRP ) initiated against Jaypee Healthcare Limited after the settlement amount was disbursed to financial creditors.It was observed that CIRP cannot be initiated against Jaypee Healthcare Ltd after full settlement of financial creditors' claims
The appeals were filed against orders passed by the National Company Law Tribunal ( NCLT ), Allahabad Bench, which initiated the CIRP against Jaypee Healthcare Ltd. and rejected the impleadment application. The NCLAT, after considering the affidavit submitted by the Interim Resolution Professional ( IRP ) and the Resolution Professional's proposal approved by the Committee of Creditors ( CoC ), noted that the entire amount equivalent to the financial creditors' claims had been deposited and disbursed.
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It was submitted by the RP that in terms of the earlier Order passed by this Tribunal, the proposal has been placed before the Committee of Creditors ( CoC ) and the CoC in its Meeting held on 09.09.2024 has approved the proposal that Settlement on the terms recorded in the Minutes of the Meetings. Copy of the Minutes have been filed along with the Affidavit. Counsel for the RP submitted that as per the approved Resolution, the payment has to be made within 30 days and the final Order may be passed after 30 days.
The terms and conditions have been already recorded in the Minutes of the CoC Meeting. Counsel for the Appellant submitted that only direction needs to be issued is that all concern shall render all assistance so the terms may be implemented as agreed by the Parties.
It was observed that since period for payment is 30 days only, all Stakeholders including the IRP, CoC, Corporate Debtor and holding Company shall render all assistance to complete the process as per the terms and conditions.
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Since the claims were fully settled, the bench comprising Justice Ashok Bhushan ( Chairperson ), Barun Mitra ( Technical Member ), and Arun Baroka ( Technical Member ) set aside the orders dated 14.06.2024 in Comp. App. ( AT ) ( Ins. ) Nos. 1301 & 1296 of 2024. The CIRP was closed. The concerned parties were directed to take necessary steps in accordance with the law.
To Read the full text of the Order CLICK HERE
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