The Chennai National Company Law Appellate Tribunal (NCLAT) has set aside the liquidation order dated 26 August 2022 against Jeppiaar Cements Pvt. Ltd., while observing that where multiple options exist to resolve a corporate debtor’s insolvency, fairness should prevail, including settlement under Section 12A of the Insolvency and Bankruptcy Code (IBC), which permits the withdrawal of the CIRP upon a successful settlement with creditors.
A Bench of Judicial Member Justice N. Seshasayee and Technical Member Jatindranath Swain restored the Corporate Insolvency Resolution Process (CIRP) and directed the Resolution Professional (RP) to explore withdrawal of the proceedings. It held:
“The broad statement therefore be made: Where there are…