Application for Withdrawal U/S 12A Must Be Filed by Applicant Who Initiated CIRP by Filing Under Sections 7, 9, or 10 | NCLAT
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- Last Updated on 13 January, 2025
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Case Details: JoinUp Corporation v. R. Sugumaran - [2025] 170 taxmann.com 266 (NCLAT - Chennai)
Judiciary and Counsel Details
- Justice M. Venugopal, Judicial Member & Ajai Das Mehrotra, Technical Member
- Vivek Kohli, Sr. Adv. and Ms. Nishtha Grover, Adv. for the Appellant.
- R. Sugumaran, E. Om Prakash, Sr. Adv. and V. John Acquinas, Adv. for the Respondent.
Facts of the Case
In the instant case, the appellant had filed a petition under section 9 of the IBC against the corporate debtor and, the same was admitted by the NCLT. The IRP collated claims from creditors and constituted the CoC with sole secured financial creditor, i.e., TMBL.
The CoC, with only one creditor, TMBL, decided to initiate liquidation, however, later, a settlement between TMBL and the corporate debtor was approved. The IRP filed an application for withdrawal of the CIRP under section 12A, which the NCLT allowed, dismissing the Section 12A petition as withdrawn.
It was noted that the application for withdrawal as per Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, read with section 12A, has to be made by the applicant who initiated the CIRP by filing an application under sections 7, 9, or 10 of the IBC.
The NCLAT noted that Form “FA” submitted by the IRP in proceedings before the NCLT showed that it was signed by the sole CoC Member and not the applicant however, the NCLT had overlooked and ignored the fact that Form ‘FA’ had not been signed by the applicant under section 9 of the IBC.
NCLAT Held
The NCLAT held that since, ‘FA’ was not proper and was not as prescribed under the provisions of Regulation 30A of the IBBI (CIRP) Regulations, 2016 and section 12A, the withdrawal of CIRP was not correct as per the Law. Consequently, the impugned order was to be set aside.
List of Cases Reviewed
- Order of NCLT (Chennai), in IA No. 1035/CHE/2022 & IA No. 1036/CHE/2022 in TCP/141/IB/2017, dated 09/11/2022 [2025] 170 taxmann.com 228 (para 22) reversed.
List of Cases Referred to
- Vallal Rick v. M/s. Shiva Industries and Holding Limited (para 12).
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