The Supreme Court has allowed settlement of insolvency proceedings against Mack Soft tech Private Limited, subsequent to a settlement.
Loans were disbursed to Mack Soft Pvt. Ltd (MSPL), which was the subsidiary of Quinn Logistics, for the ‘Q-City’ project in 2007-2010 by Quinn International Property Group (QIPG),. Issues arose when QIPG was under a financial debt and owed money to Irish Bank Resolution Corporation (IBRC), a nationalized bank in Ireland. It was alleged by the Bank that QIPG intentionally took aside the Q-City asset, to avoid take over by IBRC. However, in 2011, MSPL ceased to be the subsidiary of Quinn Logistics, as a result of which, IBRC and Quinn Group attempted to gain control over MSPL. Thereafter, it was seen that MSPL adjusted the debt of an amount of Rs 62.9 Crores, owed to Quinn Group, by writing it off unilaterally.
On the demand of Quinn Logistics in 2017 for repayment of debt, MSPL did not pay and proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 were initiated. The application wad admitted by NCLT and admission of application was upheld by NCLAT on appeal. Thereafter, an appeal was preferred to Supreme Court, wherein the order of NCLAT was stayed in September 2018.
However, during the pendency of the appeal, a settlement was reached between the Quinn Group and the shareholders of MSPL, which resulted in the shifting of control of MSPL to a new board. Hence, MSPL is now controlled by Quinn Finance, which is an Irish entity controlled by IBRC.
The case has been permitted to be withdrawn by the Supreme Court along with recording and approval of the settlement entered into, by using the power under Article 142 of Constitution of India. The Resolution Professional of MSPL has been removed and a new stable Irish Board has been put in place.