NCLAT stays order initiating CIRP against Tata Projects Limited as parties entered into a Settlement Agreement [Read Order]

NCLAT - Stays order - CIRP - Tata Projects - Parties - Entered - Settlement Agreement - Taxscan

The Chennai Bench of National Company Law Appellate Tribunal (NCLAT) stayed the order initiating Corporate Insolvency Resolution Process (CIRP) against Tata Projects Limited as parties entered into a Settlement Agreement.

“In view of the fact that the Settlement Agreement has been entered into between the parties and based on the said Agreement, the subject matter is issue is resolved between the parties, as informed by the Learned Counsels appearing for the parties, this ‘Tribunal’, dismisses the instant Company Appeal (AT)(CH)(Ins) No.02/2022 as withdrawn,” the coram of Judicial Member, Justice M. Venugopal and Technical Member Mr Kanthi Narahari observed.

The ‘Tribunal’ directs Mr. Krishna Komaravolu, IRP to file the Form FA Application for withdrawal of Corporate Insolvency Resolution Process under Section 12A of the Code coupled with Regulation 30A of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulation, 2016 before the ‘Adjudicating Authority’ within three days from today and in the event of such ‘Application’ being filed by the Interim Resolution Professional, then the ‘Adjudicating Authority’ is directed to dispose of the same, within three days thereafter, without fail.

“Till the disposal of the 12 A Withdrawal of Application, the implementation of the impugned order shall remain stayed. In the interregnum, there is no impediment for the Board of Directors of the Corporate Debtor to function independently,” the NCLAT added.

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