In the matter of Punjab Tubes Ltd.
- CitationIA No. 1574-2023 in CP(IB) No. 247-Chd-Pb-2021
Ratio decidendi
The rule this decision rests on
A withdrawal of a corporate insolvency resolution process under Section 12A of the Insolvency and Bankruptcy Code, 2016 may be allowed where the Committee of Creditors has approved the withdrawal by the requisite voting share, and the Tribunal is satisfied on the material placed before it that there is no business or asset of the corporate debtor capable of revival or resolution, such that continuing the process or proceeding to liquidation serves no purpose. On allowing withdrawal under Section 12A, the consequences follow: the petition is dismissed as withdrawn, the moratorium under Section 14 ceases, the corporate debtor is discharged from claims in lieu of the petition, and the Resolution Professional is discharged with the Board of Directors restored to its original position.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
THE NATIONAL COMPANY LAW TRIBUNAL CHANDIGARH BENCH, CHANDIGARH (through web-based video conferencing platform) Item 6 IA No. 1574/2023 In CP(IB) No. 247/Chd/Pb/2021 (Admitted) Under Section 7, & 12A IBC 2016 In the matter of:- Intec Capital Ltd. ...Petitioner/Financial Creditor Vs. Punjab Tubes Ltd. ...Respondent/Corporate Debtor Present: Mr. DP Garg, Advocate for applicant-IRP. IA No. 1574/2023 The present application has been filed by Mr. Vivek Bansal-IRP under Section 12A of IBC, 2016 r/w Regulation 30A of IBBI for withdrawal of CIRP. This proposal of withdrawal has been approved by COC in its 5th meeting held on 16.05.2023 and it is mentioned in Item No.6 of the agenda that it is prima facie clear that there is no business as well as asset in the company other than scrapped part of machinery in the possession of Intec Capital and no future of revival or resolution can be seen in that case. So in the opinion of IRP/RP there is no purpose of continuing CIRP as well as filing of liquidation in this case in absence of any business or asset other than scrapped part of machinery. The Kotak Mahindra Bank Ltd is agreed with the opinion of IRP/RP that as there is no asset of the CD available for realization except the scrapped part of machinery lying with Intec Capital Ltd., so there is no benefit of filing of liquidation in such case. As the Kotak Mahindra Bank Ltd. having 76.27 shares being one of the COC member with highest share, proposed for the withdrawal of CIRP u/s 12A instead of filing liquidation which required 90% votes in favour. The cost and expenses of IRP has already been paid. Heard, keeping in view the facts and circumstances mentioned in the application and in view of the submissions made by learned counsel for the applicant, IA No.1574/2023 filed for withdrawal of CP(IB) No. 247/Chd/Pb/2021 is allowed and CP(IB) No. 247/Chd/Pb/2021 is dismissed as withdrawn. As a consequence moratorium declared under Section 14 of the Code comes to an end and the corporate debtor is discharged from the claims in lieu of the said petition and is free from the rigours of the Code and Regulations made thereunder. Henceforth, the RP is discharged and the Board of Directors is restored to its original position. Thus, IA No.1574/2023 is disposed of.
Sd/- Sd/- (Subrata Kumar Dash) (Harnam Singh Thakur) Member (Technical) Member (Judicial) July 25, 2023 PRF
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free