NCLAT Terminates The CIRP Of Kanoria Sugar & General Manufacturing Co. Ltd., As Parties Enter Settlement
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal in Kanoria Sugar and General Manufacturing Co. Ltd. v Punjab National Bank, has terminated the Corporate Insolvency Resolution Process ("CIRP") of Kanoria Sugar and General Manufacturing Co....
The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Naresh Salecha (Technical Member), while adjudicating an appeal in Kanoria Sugar and General Manufacturing Co. Ltd. v Punjab National Bank, has terminated the Corporate Insolvency Resolution Process ("CIRP") of Kanoria Sugar and General Manufacturing Co. Ltd. ("Appellant"), which was initiated by NCLT vide an order dated 27.04.2022. The order was passed on 03.06.2022.
Brief Background
The Punjab National Bank ("Respondent") had filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before NCLT, Allahabad Bench, seeking initiation of CIRP against the Appellant. The NCLT had admitted the petition and initiated CIRP vide an order dated 27.04.2022, for a default of Rs. 49.65 Crores.
The Appellant filed an appeal before the NCLAT against the order dated 27.04.2022 and a stay was imposed on the Constitution of CoC on 23.05.2022. Subsequently, a settlement was arrived at between the parties and a One Time Settlement (OTS) proposal dated 31.05.2022 was accepted by the Respondent Bank for an amount of Rs. 40 Crores. A joint application bearing I.A. No. 1782 of 2022 was filed by both the parties to bring the settlement on record.
The NCLAT permitted the Respondent Bank to withdraw the Section 7 petition in view of settlement and the CIRP was terminated against the Appellant.
Case Title: Kanoria Sugar and General Manufacturing Co. Ltd. v Punjab National Bank, Company Appeal (AT) (Ins.) No. 548 of 2022.
Counsel for Appellant: Sr. Adv. Darpan Wadhwa along with Ms. Meghna Mishra, Mr. Tarun Sharma, Mr. Ankit Rajgarhia & Mr. Tarun Mehta, Advocates from Karanjawala & Co. and; Adv. Amber Vaid.
Counsel for Respondent: Sr. Adv. Nakul Dewan, along with Mr. Anmol Chandan and Mr. Shravan Kr. Vishnoi, Advocates.