Whether a Company Petition filed for initiation of CIRP against a Corporate Debtor can be withdrawn during the process of Liquidation? – Shri. V S Varun, Liquidator, M/s. Aradhya Wire and Ropes Pvt. Ltd. Vs. M/s. South Indian Bank – NCLT Bengaluru Bench
The provisions u/s Section 12A read with CIRP Regulation 30A pertaining to the withdrawal of the Applications filed under Section 7, 9 or 10 of the IBC, 2016 provides for filing an Application by the Applicant in the C.P. In the instant case, the C.P. was filed U/s. 10 of the IBC, 2016, by the Corporate Applicant i.e. M/ s. Aradhya Wire and Ropes Private Limited itself. On admission of the C.P. the Corporate Debtor was initially taken over by the RP and after passing of the orders of the Liquidation by the Liquidator. The instant Application has been filed by the Liquidator on receipt of the Application from one of the Promoter of the Corporate Debtor. The Hon’ble NCLAT in Shweta Vishwanath Shirke & Ors. Vs. The Committee of Creditors & Ann (2019) ibclaw.in 470 NCLAT held that the Promoters/Shareholders are entitled to settle the matter in terms of the Section. 12A and in such case, it is always open to Applicant to withdraw the Application. Hence, we are of the view that the instant Application filed by the Liquidator U/s. 12A of the IBC, 2016 is maintainable. The Hon’ble NCLAT in V. Navaneetha Krishnan Vs. Central Bank of India, Coimbatore & Anr. (2018) ibclaw.in 298 NCLAT held that even during the Liquidation period, if any person, not barred u/ s. 12A of the Code satisfy the demands of the Committee of Creditors, such person may move before the Adjudicating Authority for withdrawal of the proceedings.
