A Committee of Creditors (CoC) has approved the settlement offer submitted by GRK Reddy, the promoter of Chennai-based infrastructure developer Marg Ltd, by a majority vote, helping the embattled businessman regain control over his company that was admitted to a bankruptcy court this May.
On May 28, the National Company Law Tribunal (NCLT), Chennai, had ordered the start of corporate insolvency resolution process (CIRP) against Marg for defaulting on dues of ₹71.69 crore to ICICI Bank. Reddy appealed the ruling at the National Company Law Appellate Tribunal (NCLAT).
Withdrawal of application
During a hearing on September 30, D Srinivasan, counsel for ICICI Bank, informed NCLAT that the CoC has accepted the terms of settlement submitted by Reddy under Section 12A of the Insolvency and Bankruptcy Code (IBC). “Therefore, ICICI Bank Limited has moved an application before the adjudicating authority for the withdrawal of the application filed under Section 7 of the IBC,” he told NCLAT.
After hearing the parties, NCLAT allowed ICICI Bank to withdraw the petition. “The impugned order dated 28 May 2019 for initiating Corporate Insolvency Resolution Process is set aside along with consequential steps taken. The application under Section 7 filed by the ICICI Bank is disposed of as withdrawn. The corporate debtor (Marg) is released from all rigour of law. The Resolution Professional will hand over the assets and documents to the corporate debtor through the promoter,” ruled NCLAT.
“The corporate debtor is directed to pay the stakeholders/creditors in terms of settlement reached under Section 12A within the period as approved by the CoC, failing which it will be open to ICICI Bank to file an application for the recall of this order and revival of CIRP against the corporate debtor,” said NCLAT.