# Chandra Prakash Lohia @ Nitesh Lohia & Basanti Devi Lohia vs. West Bengal Agro Textile Corporation Ltd.

> NCLAT judgment dated 2026-05-25. Citation: TCN-2026-NCLAT-00205. Two appeals were filed against an order dated 27.08.2025 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 25 May 2026
- **Citation:** TCN-2026-NCLAT-00205
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/chandra-prakash-lohia-nitesh-lohia-basanti-devi-lohia-vs-west-bengal-agro-textil-85qxf

## Summary

### Background

Two appeals were filed against an order dated 27.08.2025 passed by the Adjudicating Authority (NCLT, Kolkata Bench) which allowed an application under Section 12A of the Insolvency & Bankruptcy Code, 2016 (IBC) for withdrawal of a Section 9 application. The original Section 9 application was filed by operational creditor Jitendra Jain against West Bengal Agro Textile Corporation Ltd. (Corporate Debtor) and was admitted on 22.08.2025. A settlement was reached between the operational creditor and the corporate debtor, leading to the IRP filing a Section 12A application for withdrawal. The appellants, who had their own Section 9 applications pending against the corporate debtor, were aggrieved by the withdrawal order, contending they were not heard.

## Facts

Two appeals were filed against the same order dated 27.08.2025 passed by the Adjudicating Authority (NCLT, Kolkata Bench, Kolkata).

The NCLT order allowed I.A. No. 1374/KB/2025 under Section 12A of the IBC and dismissed as withdrawn a Section 9 application filed by an operational creditor.

West Bengal Agro Textile Corporation Limited, the corporate debtor, is a 100% Government of West Bengal owned entity.

Operational creditor Jitendra Jain filed a Section 9 application (C.P. (IB) No.207/KB/2023) against the corporate debtor, claiming Rs. 1,19,36,635/-.

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## Issues and analysis

### Issue 1: Whether the adjudicating authority erred in allowing the application under Section 12A of the IBC …

**Ratio:** As per Regulation 30A(1)(a) of the CIRP Regulations, 2016, an application for withdrawal

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**Reasoning:** The Supreme Court in 'Abhishek Singh' (supra), affirmed in 'GLAS Trust Company LLC'

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**Interpretation:** Regulation 30A(1)(a) allows for a streamlined withdrawal process when the CIRP

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**Application:** In the present case, the Section 12A application was filed by the IRP after a

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## Parties

- **Judges:** Ashok Bh…; Indevar P…
- **Appellants:** Chandra Prakash…; Basanti Dev…; +3 more
- **Respondents:** West Bengal Agro…
- **Other parties:** Pratap Muk…
- **Advocates:** Akshay…; Rishabh…; +6 more

## Timeline

- **2025-08-18 — Settlement Ag…**: A Settlement Agreement was entered between West Bengal Agro Textile Corporation Ltd. and…
- **2025-08-22 — Section 9 Application…**: The Adjudicating Authority (NCLT) admitted the Section 9 application (C.P. (IB)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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