Financial creditors and the ex-employees could intervene and oppose any settlement arrived at between the applicants/operational creditors and the promoter director, on the grounds that proceedings of the CIRP are in rem, and any decision regarding the continuation or withdrawal of the CIRP has to be decided in the interest of all stakeholders. It noted that even in the event of the original creditors of the corporate debtor settling their disputes prior to the constitution of the CoC, the adjudicating authority has sufficient jurisdiction to reject an application under Section 12A of the Code, if the facts and circumstances of the case warrant such rejection.

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