# 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-01795. 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-01795
- **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-fcd8bb35

## 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 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, leading to the application under Section 12A of the Insolvency and Bankruptcy Code, 2016. No claims were received from other creditors until the filing of the application after public announcement on 05/08/2019. A Demand Draft of Rs. 2,30,000/- was presented, satisfying the Resolution Professional's CIRP costs and fees. The Committee of Creditors (CoC) was not constituted.

## Issues and analysis

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

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

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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, primarily when the CoC

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**Application:** In this case, the Corporate Debtor settled the claim of the Operational

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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 was…

## 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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