In the matter of Niteen Parulekar Architects Private Limited
- CitationIA-1281-2023 in C.P.(IB)-519(MB)-2020
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority may permit withdrawal of an application for initiation of the corporate insolvency resolution process under Section 12A of the Insolvency and Bankruptcy Code, 2016, on the application of the Interim Resolution Professional made at the request of the financial creditor, where the financial creditor has expressed unwillingness to pursue the process, the Committee of Creditors has not been constituted, and the expenses incurred by the Interim Resolution Professional have been paid by the financial creditor. Consequent upon such withdrawal, the Adjudicating Authority may release the corporate debtor from the rigour of the corporate insolvency resolution process, reinstate the erstwhile management to the Board, direct the Interim Resolution Professional to hand over the financial and other records to the reinstated Board, and direct intimation to the Registrar of Companies of the withdrawal and resumption of normal functioning of the company.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
O R D E R
The Court is convened through Video Conference.
1. Mr. Uditi Singh, Ld. Counsel for the IRP/Applicant in IA present. Mr. Rajeev Mannadiar, Interim Resolution Professional (IRP), present in person. Mr. Arjun Sathees i/b Indialaw LLP, Ld. Counsel for the Financial Creditor/Original Petitioner present.
2. IA-1281/2023: This is an Application filed under Section 12A of the IBC, 2016 by the IRP, on the request of the Financial Creditor, seeking withdrawal of the CIRP of the Corporate Debtor.
3. This Bench vide an order dated 17.02.2023 the Petition bearing No.: CP(IB)- 519(MB)/2020 filed u/s 7 by Insta Capital Pvt. Ltd. was admitted and CIRP of the Corporate Debtor was commenced, moratorium was declared and Interim Resolution Professional (IRP) was appointed.
4. In pursuant to the above admission Order, the appointed IRP made public announcement in Form A in local newspapers on 24.02.2023. Contd……2
10.04.2023 / pvs
IA-1281/2023 in C.P.(IB)/519(MB)/2020 : 2 :
5. However, the Financial Creditor vide email dated 25.02.2023 addressed to the IRP expressed its unwillingness to pursue the CIRP of the Corporate Debtor as the Corporate Debtor is inoperative, given up its registered office and relieved all its employees. In furtherance of the email, the Financial Creditor submitted their CIRP withdrawal application in Form FA on 25.02.2023. 6. At the request of the Financial Creditor, the IRP filed this application under Section 12A of IBC for the withdrawal of the CIRP of the Corporate Debtor. CoC is not constituted in this matter. The IRP confirmed that the expenses incurred by the IRP/Applicant have been fully paid by the Financial Creditor.
7. Considering the facts and circumstances as submitted by the IRP, this Bench allows the withdrawal of the CIRP of the Corporate Debtor and orders that- 7.1 The Corporate Debtor is free from the rigour of CIRP and the erstwhile management is being reinstated to the Board. The IRP is to handover the whole financial and other records to the reinstated Board of the Company. RoC to be intimated the withdrawal of the CIRP and normal functioning of the Company.
8. With the above directions, IA-1281/2023 is allowed and disposed of. CP- 519(MB)/2020 is dismissed as withdrawn. File to be consigned to records.
Sd/- Sd/- PRABHAT KUMAR KISHORE VEMULAPALLI Member (Technical) Member (Judicial)
10.04.2023 / pvs
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