# In the matter of Dilip Polyfab Pvt. Ltd. CA(IB)No. 1690-KB-2019 in CP(IB)No. 1443-KB-2018

> NCLT judgment dated 2020-01-27. Citation: TCN-2020-NCLT-02178. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 27 Jan 2020
- **Citation:** TCN-2020-NCLT-02178
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dilip-polyfab-pvt-ltd-caibno-1690-kb-2019-in-cpibno-1443-kb-2018-40cccb8d

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC). The CIRP was initially approved by the Committee of Creditors (CoC) with a 100% voting share. The application for withdrawal was filed because no settlement was reached between the Financial Creditor (Dena Bank) and the Corporate Debtor (Dilip Polyfab Pvt. Ltd.), and no assets were available or traceable for resolution or liquidation. The directors of the company are absconding and evading notice, although the company is listed as active on the MCA portal.

## Facts

Dena Bank initiated CIRP against Dilip Polyfab Pvt. Ltd. under Section 7 of the IBC. The CIRP was approved by the CoC with 100% voting share. Subsequently, an application was filed under Section 12A of the IBC for withdrawal of the CIRP. The reason for seeking withdrawal was the absence of any settlement between Dena Bank and Dilip Polyfab Pvt. Ltd., coupled with the fact that no assets of the Corporate Debtor were traceable or available for resolution or liquidation. The directors of Dilip Polyfab Pvt. Ltd. were absconding and evading notice, although the company was listed as active on the MCA portal. The Resolution Professional (RP) submitted that his fees and resolution costs had been paid.

## Issues and analysis

### Issue 1: Whether the CIRP can be withdrawn under Section 12A of the IBC in the absence of a settlement …

**Ratio:** Section 12A of the IBC generally requires a settlement with the Financial Creditor for

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**Reasoning:** The court acknowledged the requirement of settlement under Section 12A but considered the

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**Interpretation:** Section 12A is interpreted to allow for withdrawal in exceptional circumstances

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**Application:** Despite the absence of a settlement, the court allowed the withdrawal because

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Dena…
- **Respondents:** Dilip Polyfab…; M/s. Dilip…

## Timeline

- **2020-01-27 — Hearing…**: Hearing held on January…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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