Prime Impex was the Operational Creditor who had initiated insolvency proceedings against the Corporate Debtor where CIRP had been admitted on August 16, 2022. Axis Bank was the sole Financial Creditor who had filed a claim of around ₹1.04 crore, whereas the operational debt was about ₹11.90 lakh. No resolution was possible, and even the process of liquidation had started.
Modi settled the financial obligation of Axis Bank during the course of CIRP. Modi then settled the dues of Prime Impex and assured the CIRP costs as per determination of Adjudicating Authority. Ultimately, Modi offered Rs. 18 lakh as full and final settlement to Prime Impex.
It is contended by Appellant that CIRP would be meaningless as the…