Mr. Sanjaymama Vitthalrao Shinde vs Union Bank Of India Limited & Ors
- CitationCompany Appeal (AT) (Insolvency) No. 572 of 2026
Ratio decidendi
The rule this decision rests on
The withdrawal of a corporate insolvency resolution process after admission under Section 7 requires an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, filed by the Financial Creditor, and cannot be effected merely on the basis of a settlement reached between the Appellant and a Financial Creditor. Where a Committee of Creditors has been stayed from constitution by an interim order, the Court may modify that order so that the Interim Resolution Professional constitutes the Committee of Creditors, which may then vote on the matter before the Financial Creditor files its Section 12A application, with the Adjudicating Authority directed to endeavour to dispose of such an application within a fixed period.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Sanjaymama Vitthalrao Shinde ...Appellant
Versus
Union Bank of India & Anr. ...Respondents
Present: For Appellant : Mr. Abhijeet Sinha, Sr. Advocate with Mr. Ramchandra Madan, Mr. Tushar Nigam, Mr. Himanshu, Advocates. For Respondents : Mr. Jayshree Satpute, Advocate. Mr. Ankkur Kumar, Advocate for IRP.
ORDER
(Hybrid Mode)
29.06.2026: This appeal has been filed against the order dated
13.03.2026 by which the Section 7 application filed by the Union Bank of
India has been admitted. In this appeal, we had passed an interim order on
25.03.2026, which is to the following effect:
"4. In pursuance of the impugned order, Committee of Creditors shall not be constituted."
2. Today when the case is called, learned counsel for the Appellant
submitted that settlement has been entered with Union Bank of India, the
Financial Creditor and the another Financial Creditor i.e. Solapur Cooperative
Bank has no objection since account is regular with Solapur Cooperative
Bank. Learned counsel for the Appellant submitted that in view of the
aforesaid, the CIRP need to be closed.
Cont'd.../
3. We have heard learned counsel for the Appellant, learned counsel for
the Union Bank of India and learned counsel for the IRP as well as learned
counsel for Solapur Cooperative Bank.
4. In facts of the present case, we are of the view that for withdrawal of the
CIRP, the Financial Creditor need to file application under Section 12A. We
having already stayed the constitution of CoC by the interim order dated
25.03.2026, the said interim order is modified. Let the IRP constitute the CoC
within a week and thereafter, file application under 12A within further period
of one week. The Adjudicating Authority shall endeavour to dispose of the
application under 12A preferably within 30 days from the date of filing of the
application. Appeal is disposed of accordingly.
5. The IRP after constituting CoC may obtain vote of the CoC before filing
the application, however, need not take any further steps in the CIRP.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Archana/md
Company Appeal (AT) (Ins.) No. 572 of 2026 2 of 2
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