Whether an application under Section 12A of IBC for withdrawal of the CIRP can be filed after commencement of the Liquidation Proceedings? – Asha Chopra and Ors. Vs. Hind Motors India Ltd. and Ors. – NCLAT New Delhi
Hon’ble NCLAT held that:
(i) The CoC exist till continuation of the CIRP and after the Order passed under Section 33 for Liquidation, the CoC does not continues so as to take a decision for withdrawal of an Application under Sections 7, 9 & 10.
(ii) In the Liquidation Process, Compromise or Arrangement is contemplated as per Regulation 2B which clearly negates the submission of the Appellant that withdrawal is permissible only under Section 12A.
(iii) In view of the clear Statutory Scheme as delineated by 12A, Section 33 and Regulation 2B of the Liquidation Regulation, the Hon’ble Bench is of the view that during Liquidation period, an Application under Section 12A is not permissible.
(iv) The Hon’ble NCLAT also does not subscribe to the observation made in V. Navaneetha Krishnan v. Central Bank of India, Coimbatore and Anr. (2018) ibclaw.in 298 NCLAT that even during Liquidation period, any person can make an Application under 12A.
