SEBI and Corporate Laws – July 15, 2019

46 SEBI & CORPORATE LAWS - MAGAZINE[Vol. 154

erational creditor thus, filed instant application to initiate CIRP against corporate
debtor - It is a settled position of law that provisions of Code cannot be invoked for
recovery of outstanding amount but it can be invoked to initiate CIRP for justified
reasons - In instant case amount claimed by operational creditor was not in ac-
cordance with terms of settlement agreement as operational creditor had claimed
interest on amount that was being claimed as due, whereas settlement agreement
did not talk about payment of interest for failure to pay outstanding instalments
and therefore, there was a serious dispute exists with reference to claim made by
operational creditor - Whether therefore, instant application was not only defective,
but also was instituted with an intention to recover alleged outstanding amount by
initiating CIRP proceedings, and thus, it was not a fit case for admission - Held, yes

CASES REFERRED TO
Mobilox Innovations (P.) Ltd.

v.

Kirusa Software (P.) Ltd.

[ 2017 ]

85

taxmann.com

292 / 144

SCL^

37

(SC)

and

Transmission Corpn. of A.P. Ltd.

v.
Equipment Conductors and Cables
Ltd.

[ 2018 ]

98

taxmann.com

375 / 150

SCL

447

(SC).

Ms. Sahana Devanathan for the Appellant. Uday Shankar for the Respondent.
nn

[2019] 154 SCL 46 (Mag.)/106 taxmann.com 227 (NCLT - Mum.)

NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH

Andhra Bank v. Sterling Biotech Ltd.

V.P. SINGH, JUDICIAL MEMBER

AND RAVIKUMAR DURAISAMY, TECHNICAL MEMBER

MA NOS. 951 AND 1519 OF 2019

CP(IB) NO. 490 (MB) OF 2018

MAY 8, 2019

Where no resolution plan had been approved despite completion of CIR
period, order for liquidation of corporate debtor was to be passed

Section 33, read with sections 12A and 29A, of the Insolvency and Bankruptcy
Code, 2016 - Corporate liquidation process - Initiation of - Whether Adjudicating
Authority may allow withdrawal of application under section 7, 9 or 10, on an
application made by applicant with approval of ninety per cent voting share of
CoC - Held, yes - Petitioner/financial creditor submitted application under section