# In the matter of Bhowmik Dyeing and Bleaching Private Limited CA(IB) No. 1067-KB-2019 in CP (IB) No. 1717-KB-2018

> NCLT judgment dated 2019-08-26. Citation: TCN-2019-NCLT-01793. The Interim Resolution Professional (IRP) in CP(IB) No. 1717/KB/2018 filed an application…

- **Court:** NCLT
- **Order date:** 26 Aug 2019
- **Citation:** TCN-2019-NCLT-01793
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhowmik-dyeing-and-bleaching-private-limited-caib-no-1067-kb-2019-in-cp-ib-no-17-fc2d37d9

## Summary

### Background

The Interim Resolution Professional (IRP) in CP(IB) No. 1717/KB/2018 filed an application (CA(IB) No. 1067/KB/2019) to record the settlement of the claim of the Operational Creditor. The IRP was directed to submit a progress report. The Corporate Debtor settled the claim of the Operational Creditor, and the IRP was instructed to file the application. The Committee of Creditors (CoC) has not been constituted.

## Facts

The Interim Resolution Professional (IRP) was appointed in CP(IB) No. 1717/KB/2018. The IRP filed an application (CA(IB) No. 1067/KB/2019) on 13/08/2019 to record the settlement of the claim of the Operational Creditor. The IRP was directed to submit a progress report on 02/09/2019. The Corporate Debtor settled the claim of the Operational Creditor, leading to the application under Section 12A of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (CoC) has not been constituted. No claims were received from creditors until the application was filed after public announcement on 05/08/2019. A Demand Draft of Rs. 2,30,000/- was provided to satisfy the claim of the Resolution Professional towards CIRP costs and fees.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) should …

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

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**Reasoning:** The court reasoned that the Corporate Debtor had settled the claim of the Operational

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**Interpretation:** Section 12A provides a mechanism for withdrawal of CIRP applications. The

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**Application:** The court applied the principle of allowing withdrawal when a settlement is

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Respondents:** M/s. Texchem…; M/s. Bhowmik…

## Timeline

- **2018-01-01 — CP(IB) F…**: CP(IB) No. 1717/KB/2018…
- **2019-08-05 — Public Annou…**: Public announcement…

## 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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