In the matter of Avesthagen Ltd.
- CitationI.A.No.441/2025 in C.P (IB) No. 173/BB/2023
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority may permit withdrawal of a Section 9 insolvency petition under Section 12A of the Insolvency and Bankruptcy Code, 2016, on an application made after settlement between the operational creditor and the corporate debtor, where the committee of creditors has not yet been constituted and the withdrawal is supported by Form FA and is otherwise within the conditions of Section 12A. Upon withdrawal under Section 12A, the moratorium ceases to have effect from the date of the order, the corporate debtor is released from the corporate insolvency resolution process, and the interim resolution professional is discharged and directed to hand over the assets and affairs of the corporate debtor to the suspended board of directors.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
1. Heard the Learned Counsel for the parties. 2. This application is filed by the Applicant/IRP under Section 12A of the I & B Code, 2016 read with Regulations 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and Rule 11 of the NCLT Rules, 2016 seeking for withdrawal of the C.P (IB) No.173/BB/2023 in view of the settlement arrived between the Operational Creditor and Corporate Debtor and the default amount of Rs.2,38,15,350/- is being settled fully and default amount of USD 1,578,132 shall be settled via a subsequent settlement agreement. Pertinently, the Applicant has not yet constituted the Committee of Creditors (CoC). Accordingly, the Petitioner has executed Form-FA dated 14.05.2025 seeking for withdrawing the company petition. Therefore, in view of the amicable settlement between the parties, the Applicant has filed the present application seeking withdrawal of the -1- present company petition. Since the conditions for withdrawal of CIRP U/s.12A of the Code have been satisfied, this Adjudicating Authority has no objection for withdrawal of this Petition. Therefore, the instant Application is hereby allowed. 3. On 26.05.2025, the Adjudicating Authority noticed that the concerned person authorised to sign the form has no authorisation to withdraw the petition, therefore, the Applicant was directed to file the same. In compliance to the same, the Applicant has filed the Compliance Memo vide Dy.No.2973 dated 05.06.2025 and the same is taken on record. 4. Consequently, the Corporate Debtor is hereby released from the rigours of CIRP and the IRP so appointed, is directed to handover the charge of the assets and affairs of the Corporate Debtor back to the Suspended Members of the Board of Directors of Corporate Debtor. Subsequently, IRP is discharged from his duties of the Corporate Debtor, and moratorium shall be ceased to have effect, from the date of this order. 5. Accordingly, I.A (IBC) No.441/2025 stands allowed, consequently, the Petition bearing C.P.(IB) No.173/BB/2023 is disposed of as withdrawn and pending I.As, if any, stands closed.
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RADHAKRISHNA SREEPADA SUNIL KUMAR AGGARWAL MEMBER (TECHNICAL) MEMBER (JUDICIAL)
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