An application for withdrawal as per CIRP Regulation 30A read with Section 12A of IBC is to be necessarily made by Applicant who initiated CIRP by filing petition under Sec. 7, Sec. 9 or Sec. 10 of IBC, 2016 – JoinUp Corporation Vs. Mr. R. Sugumaran IRP of Safire Machinery Company Pvt. Ltd. and Ors. – NCLAT Chennai

In this case, the applicant of the application under Section 9 of IBC, 2016 was not willing to sign Form ‘FA’ and that Form ‘FA’ has been signed by the Financial Creditor.

Hon’ble NCLAT held that:

(i) From the plain reading of Section 12A it is clear that withdrawal of CIRP has to satisfy twin requirements of an application by the applicant which then needs approval of CoC by atleast 90% voting share. The word applicant is defined in Regulation 2(1)(a) of IBBI (CIRP) Regulations, 2016 as the person(s) filing an application under sections 7, 9 or 10, as the case may be.
(ii) The application for withdrawal as per the Regulation 30A read with Section 12A has to be necessarily made by the applicant who has initiated CIRP by filing application under Section 7, Section 9 or Section 10 of IBC, 2016.
(iii) The impugned order has recorded as under, which is not factually correct, as Form ‘FA’ was not signed or submitted by the Operational Creditor.

An application for withdrawal as per CIRP Regulation 30A read with Section 12A of IBC is to be necessarily made by Applicant who initiated CIRP by filing petition under Sec. 7, Sec. 9 or Sec. 10 of IBC, 2016 – JoinUp Corporation Vs. Mr. R. Sugumaran IRP of Safire Machinery Company Pvt. Ltd. and Ors. – NCLAT Chennai Read Post »