In the IBC proceedings, Applicant is not entitled to withdraw the application filed under Section 9 of Insolvency Code at any stage without reason and pray for liberty to file afresh – Florex Tiles Vs. Greenstone Granite Pvt. Ltd. – NCLAT New Delhi
In this case, the NCLT permitted the Appellant to withdraw the Application with cost, however, as no reason is given and withdrawal is sought at belated stage, no liberty granted to file application again.
Hon’ble NCLAT has dismissed appeal holding that:
(i) When an Application under Section 9 proceeded for more than a year, without there being any valid reason, the Appellant, cannot claim as a matter of right that it ought to have been permitted to file a fresh petition under Section 9.
(ii) While in the IBC proceedings, it cannot be held as a matter of right that the Applicant is entitled to withdraw the Application filed under Section 9 at any stage and pray for liberty to file afresh.
(iii) The permission to file fresh suit can be granted only when the Court is satisfied that there is sufficient ground for allowing the plaintiff to institute a fresh suit. The submission that it is automatic and the Court was obliged to grant permission to file fresh suit, cannot be accepted.
