# 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-02183. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 27 Jan 2020
- **Citation:** TCN-2020-NCLT-02183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dilip-polyfab-pvt-ltd-caibno-1690-kb-2019-in-cpibno-1443-kb-2018-edb7d472

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) filed 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. However, no settlement was reached between the Financial Creditor and the Corporate Debtor. The application for withdrawal was filed because no assets were available or could be traced for resolution or liquidation purposes. 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 Corporate Insolvency Resolution Process (CIRP) against Dilip Polyfab Pvt. Ltd. under Section 7 of the IBC. The CIRP was approved by the Committee of Creditors (CoC) with 100% voting share. No settlement was reached between Dena Bank and Dilip Polyfab Pvt. Ltd. The Resolution Professional (RP) filed an application under Section 12A of the IBC for withdrawal of the CIRP, citing the unavailability of assets for resolution or liquidation. The directors of Dilip Polyfab Pvt. Ltd. are absconding and evading notice. The RP confirmed that his fees and resolution costs have 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### Issue 1: Whether the CIRP can be withdrawn under Section 12A of the IBC in the absence of a settlement …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 a settlement under Section 12A but considered

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**Interpretation:** Section 12A is interpreted to allow for withdrawal of CIRP even without

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**Application:** In this case, the court deviated from the strict requirement of Section 12A due

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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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