Hon’ble NCLAT in the CA(AT) No. 456 of 2018
Facts of the Case:-
The PNB filed application u/s 7 of Insolvency & Bankruptcy Code,2016 for initiation of Corporate Insolvency Resolution Process against ‘Mintri Tea Company Pvt. Ltd.’ The application was admitted and single member Committee of Creditors comprising of ‘Punjab National Bank’ was consitituted in the absence of financial Creditor. The Appeallant Krishna Kumar Mintri shareholder of ‘Mintri Tea Company pvt. Ltd. (Corporate Debtor) negotiated with PNB and other Claimants who claim to be the creditors and settled the claims in full.
PNB( Applicant u/s 7 ) filed application u/s 12A of the Insolvency and Bankruptcy Code,2016 for withdrawal of the application.
The issue was relating to Sec 12A and regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
Hon’ble NCLAT held that:-
” It is clear by the decision given by Hon’ble Supreme Court in Brilliant Alloys Private Limited Vs. Ms. S. Rajagopal & Ors. that Regulation 30A cannot override the substantive provision of Section 12A. No discrimination can be made for withdrawal of an application under section 7 or section 9 on the ground that the application was filed before a cutoff date or filed after a cutoff date.”
“So far as Resolution Applicant is concerned, they do not have any right to plead merely because they have filed resolution plan, till it’s approval or rejection by the AA”
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