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Abhay Trading Company vs Ask Home Furnishing Private Limited

National Company Law Appellate Tribunal22 August 2025Ashok Bhushan

Ratio decidendi

The rule this decision rests on

Where a Section 9 application under the Insolvency and Bankruptcy Code is sought to be withdrawn on the applicant's own request, on the ground of inadvertent omissions and the need for better particulars, the applicant is entitled to liberty to file afresh, and the Adjudicating Authority's order permitting withdrawal without such liberty is to be modified accordingly.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHICompany Appeal (AT) (Ins) No. 1268 of 2025

IN THE MATTER OF: Abhay Trading Company ...Appellants Versus Ask Home Furnishing Pvt. Ltd. ...Respondents

Present: For Appellant : Mr. Aalok Jagga, Mr. APS Madaan, Mr. Nipun Gautam and Ms. Vibhu Aggarwal, Advocates. For Respondents : None.

ORDER

(Hybrid Mode)

22.08.2025: Heard counsel for the Appellant.

2. This appeal has been filed against the order dated 13.08.2025 by which

order an IA No. 3891(ND)/2025 filed by the appellant to withdraw the

company petition filed under Section 9 with liberty to file afresh has been

permitted and Section 9 application has been dismissed as withdrawn.

Appellant aggrieved by the order has come up in this appeal. Appellant

grievances is that he has filed the application for withdrawal with liberty to

file afresh with better particulars, although Adjudicating Authority has

allowed the application but liberty has not been granted in the impugned

order. Ld. Counsel for the appellant submits that in the Section 9 petition no

notice was issued to the corporate debtor and the orders were passed even

before issuance of notice to the corporate debtor.

3. We have considered the submission of counsel for the Appellant and

perused the record. I.A. No. 3891(ND)/2025 mentions the reasons for

withdrawal it is useful to extract paragraph- 6 & 7 of the application which is

as follows:

"6. That, there were some other inadvertent errors when the present captioned petition was filed before this Hon'ble Tribunal as some more details and annexures had to be annexed which were left out inadvertently. The Applicant now prays to withdraw the present petition on this ground also and file it afresh with better particulars.

7. That the Applicant, therefore, seeks permission of this Hon'ble Tribunal to withdraw the present petition and file it afresh with better particulars for the sake of brevity and being in conformity with the Section 8 demand notice dated 06.10.2023."

The prayers made in the application is to the following effect:-

"PRAYER

In view of the foregoing, it is most respectfully prayed that this Hon'ble Tribunal may graciously be pleased to:

a. Allow the present application;

b. Permit the Applicant to withdraw the present petition and file it afresh with better particulars for the sake of brevity;

c. Pass such other and further orders as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the present case."

Thus, the application was filed by the Appellant seeking withdrawal to

file afresh with better particular. Ld. Counsel for the appellant contended that

it was own request of the appellant withdrawal was sought hence there was

2 of 3 Company Appeal (AT) (Ins) No. 1268 of 2025 no occasion for not giving liberty to file afresh, not so when the respondent

has not even noticed in the Section 9 application.

4. We find sufficient substance in the application of the appellant, when

the application was sought to withdrawn on the ground as noted above in the

application, we are of the view that applicant was entitled for liberty to file

afresh. In view of the aforesaid, we are of the view that the order dated

13.08.2025 needs to be modified by permitting withdrawal of the IB-

383(ND)/ 2025 with liberty to file afresh. We have not issued notice to the

respondent, in view of the fact that order was passed without notice to the

respondent by the Adjudicating Authority. In result, the order dated

13.08.2025 is modified to above extent. Appeal is disposed of accordingly.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) harleen/NN

3 of 3 Company Appeal (AT) (Ins) No. 1268 of 2025

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