In the matter of Chur Textiles Limited
- CitationIA-417-2024 in C.P.(IB)-553(MB)-2023
Ratio decidendi
The rule this decision rests on
The Tribunal may permit withdrawal of a Section 9 application under Section 12A of the Insolvency and Bankruptcy Code, 2016, where the withdrawal is sought before the constitution of the Committee of Creditors, the settlement between the parties has been reached before that stage, and the original applicant has signed the prescribed Form FA consenting to withdrawal.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
O R D E R
1. Adv. Suyesha Kakarla i/b Apex Law Partners, Ld. Counsel for Operational Creditor present. Adv. Kashmira Khedekar i/b P.G. Sabnis, Ld. Counsel for the IRP present. Mr. Aditya Chitale a/w Mr. Sumedh Rvikar i/b MNSQ Legal, Ld. Counsel for the Corporate Debtor present.
2. IA-417/2024: This is an Application filed by the Interim Resolution Professional (IRP) of the Corporate Debtor under Section 12A of the IBC, 2016, for withdrawal of the Company Petition CP(IB)-553/MB/2023.
3. The Applicant submits that Kanha Trading Company an operational creditor of Chur Textiles Ltd. (corporate debtor) filed the above Company Petition for initiation of CIRP of the Corporate Debtor and the same was admitted on 05.01.2024 and IRP was appointed. However, before constitution of the CoC, the Corporate Debtor approached the Operational Creditor and the matter is settled between them by entering into a Consent Contd….2 07.02.2024 / pvs
IA-417/2024 in C.P.(IB)/553(MB)/2023 : 2 : Terms dated 17.01.2024. At the request of the Operational Creditor, the IRP filed this Petition seeking withdrawal of the Company Petition.
4. The Applicant has filed Form FA duly signed by the original Petitioner.
5. In view of the settlement between the parties before the constitution of CoC and the Form FA duly signed by the original Petitioner, this Bench allows withdrawal of the CIRP against the Corporate Debtor.
6. The Corporate Debtor is free from the rigour of CIRP and the erstwhile management is reinstated to the Board. The IRP is to handover the whole financial and other records to the reinstated Board of the Company upon clearance of the account of the IRP. RoC to be intimated the withdrawal of the CIRP and normal function of the Company.
7. With the foregoing, IA-417/2024 is allowed and disposed of. Accordingly, CP(IB)-553/MB/2023 is dismissed as withdrawn. File to be consigned to records.
Sd/- Sd/- ANU JAGMOHAN SINGH KISHORE VEMULAPALLI Member (Technical) Member (Judicial)
07.02.2024 / pvs
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