MUMBAI: The Mumbai bench of the National Company Law Tribunal (NCLT) allows the withdrawal of the corporate insolvency resolution process (CIRP) against Syska LED Lights Pvt Ltd.
Earlier, the tribunal had admitted the company under the insolvency resolution process and had appointed Ravi Prakash Ganti as the interim resolution professional for the company.
Syska LED Lights is part of the Pune-based SSK Group, an exclusive distributor of Samsung mobiles, accessories and tables for five states in Western India. In the past few years, the light-emitting diode (LED) lighting solutions provider and consumer electric company has expanded into personal care, home appliances, smart watches and audio categories.
“Learned Counsel for the creditor submits that they have settled the dues with the Corporate Debtor and settlement agreement dated May 07, 2024, has also been executed and joint application moved by the operational creditor and corporate debtor,” said a division bench of Justice VG Bisht and technical member Prabhat Kumar in its order of May 9. “In view thereof, the corporate debtor is taken out from the CIRP and the resolution professional is directed to hand over the control back, if taken over.”
Earlier on May 7, the tribunal had admitted an application filed by the company’s operational creditor, Neeraj Singh Proprietor of NJ Electronics.
Before the tribunal’s order to admit the company, Anuj Solanki, counsel for the operational creditor, had argued that the company had supplied various products such as transformers and inductors to the Syska LED Lights.
“The business between the operational creditor and the respondent ran smoothly till December 2022 despite some acceptable delay in payment by the respondent (Syska LED Lights),” argued the counsel for the petitioner. “Thereafter, the respondent stopped/delayed making payment to the operational creditor for the supplied goods.”
On the other hand, Syska LED Lights, through its counsel and partner of law firm Dhruve Liladhar & Co Umang Mehta, argued that the company is willing to settle the matter.
Ashish Pyasi, partner at the law firm Aendri Legal, said once the company is admitted under the IBC, the withdrawal of such a process depends on the stage reached at the time of such a move. Once the tribunal is satisfied that all the compliances are followed, then the NCLT uses its discretion to allow the withdrawal of the process.
“If the settlement has arrived between the parties soon after the commencement of the process, the resolution process can be withdrawn immediately,” said Pyasi. “However, if the committee of creditors (CoC) is formed, then the application for withdrawal is possible only with the consent of 90% of the CoC members.”
Source Homevior.in
