# In the matter of Bhambhani Shipping Ltd. I.A. 3973-2019 in C.P. (I.B) 1407(MB)-2018

> NCLT judgment dated 2019-12-13. Citation: TCN-2019-NCLT-00198. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016.…

- **Court:** NCLT
- **Order date:** 13 Dec 2019
- **Citation:** TCN-2019-NCLT-00198
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhambhani-shipping-ltd-ia-3973-2019-in-cp-ib-1407mb-2018-0c68daf3

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. Harbour Water Suppliers Company Pvt. Ltd. filed a petition against Bhambhani Shipping Ltd. The Interim Resolution Professional (IRP) was appointed. The petitioner sought withdrawal of the petition through the IRP.

## Facts

Harbour Water Suppliers Company Pvt. Ltd. initiated insolvency proceedings against Bhambhani Shipping Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. An Interim Resolution Professional (IRP) was appointed. Before the constitution of a committee of creditors, the petitioner sought to withdraw the petition through the IRP. The Tribunal considered the withdrawal request, referencing the Supreme Court's judgment in 'Swiss Ribbons Pvt. Ltd. & Another Vs Union of India & Others', which clarified the process after the admission of a creditor's petition. The key fact is that the withdrawal application was made before the committee of creditors was formed, allowing the Tribunal to exercise its inherent powers under Rule 11 of the NCLT Rules.

## Issues and analysis

### Issue 1: Whether the Tribunal can allow the withdrawal of a petition under Section 9 of the Insolvency and …

**Ratio:** The Tribunal has the power to allow or disallow an application for withdrawal or

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**Reasoning:** The court reasoned that at any stage where the committee of creditors is not yet

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**Interpretation:** This interprets Rule 11 of the NCLT Rules to grant the Tribunal discretionary

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**Application:** In this case, since the committee of creditors was not yet constituted, the

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## Parties

- **Judges:** SUCHITRA KANUPARTH…; V. Nallasen…; +1 more
- **Appellants:** Harbour Water…
- **Respondents:** Bhambhani…

## Timeline

- **2018-01-01 — C.P.(IB)-1407(…**: Filing of C.P.(IB)-1407(…
- **2019-12-13 — Order Da…**: Order sheet of the hearing of Mumbai Bench…

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