Top Highlights

• IBC does not contain any provision for constitution of the Committee of Creditors (CoC) with a single Operational Creditor, when no claims are received by the IRP after public announcement. The Bench has terminated the CIRP of a Corporate Debtor in which claim was received from the only Operational Creditor and there was no Financial Creditor to co...
• The NCLT vide an order dated 20.01.2010 initiated CIRP against the Corporate Debtor. The Interim Resolution Professional (“IRP”) received only a single claim from the only Operational Creditor. The IRP filed an application seeking closure of CIRP since there was no Financial Creditor to constitute the CoC.
• On 06.12.2021, the NCLT opined that the IRP is obliged to constitute the Committee of Creditors (“CoC”) with the sole Operational Creditor. The IRP was directed to file an application before NCLT to restore the name of the Corporate Debtor under Section 252 of Companies Act, 2013.
• The IRP filed an appeal before NCLAT against the order dated 06.12.2021.
• The Bench observed that no claims have been submitted to the IRP after public announcement and the Corporate Debtor’s name has been struck off by the RoC for non-filing of the financial statements.

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