# In the matter of Bhandari Hosiery Exports Limited  IA No. 73-2020 in CP (IB) No. 361-Chd-Pb-2018

> NCLT judgment dated 2020-02-17. Citation: TCN-2020-NCLT-01927. The case involves an application (IA No. 73/2020) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 17 Feb 2020
- **Citation:** TCN-2020-NCLT-01927
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhandari-hosiery-exports-limited-ia-no-73-2020-in-cp-ib-no-361-chd-pb-2018-08c37c7f

## Summary

### Background

The case involves an application (IA No. 73/2020) filed by the Interim Resolution Professional (IRP) of M/s Bhandari Hosiery Exports Ltd. seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the company. The CIRP was initiated based on a petition (CP (IB) No. 361/Chd/Pb/2018) filed by Shri Gunit Pal Singh Sidana, an operational creditor, which was admitted on 10.02.2020. The application for withdrawal is made under Section 12-A of the Insolvency and Bankruptcy Code, 2016.

## Facts

Shri Gunit Pal Singh Sidana, an operational creditor of M/s Bhandari Hosiery Exports Limited, initiated Corporate Insolvency Resolution Process (CIRP) against the company by filing CP (IB) No. 361/Chd/Pb/2018, which was admitted on 10.02.2020. Subsequently, a settlement was reached between the operational creditor and the corporate debtor. As a result of the settlement, the operational creditor submitted Form FA to the Interim Resolution Professional (IRP) seeking withdrawal of the CIRP petition. The IRP then filed IA No. 73/2020 seeking withdrawal of the CIRP under Section 12-A of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (COC) had not been constituted by this time. The operational creditor also paid the expenses as per Regulation 30 A(2).

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12-A of the Insolvency and …

**Ratio:** Section 12-A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of an

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**Reasoning:** The Adjudicating Authority considered the fact that a settlement had been reached between

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**Interpretation:** Section 12-A provides a mechanism for withdrawing CIRP applications,

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**Application:** In this case, since the COC was not constituted and a settlement was reached,

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Respondents:** M/s Bhandari…
- **Advocates:** Harsh…; NPS Ch…

## Timeline

- **2018-01-01 — CP (IB) No. 361/Chd/Pb/2…**: CP (IB) No. 361/Chd/Pb/2018 filed by Shri Gunit Pal Singh Sidana against M/s Bhandari…
- **2020-02-10 — CP (IB) No. 361/Chd/Pb/2…**: CP (IB) No. 361/Chd/Pb/2018 filed by Shri Gunit Pal Singh Sidana was admitted by the…

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