# In the matter of Hillary Fashion Cotfab Ltd. IA 32-2020 in C.P(IB) No. 526-NCLT-AHM-2018

> NCLT judgment dated 2020-01-09. Citation: TCN-2020-NCLT-02417. The case involves an application filed under Section 12A of the IB Code r.w. Regulation 30A of…

- **Court:** NCLT
- **Order date:** 9 Jan 2020
- **Citation:** TCN-2020-NCLT-02417
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hillary-fashion-cotfab-ltd-ia-32-2020-in-cpib-no-526-nclt-ahm-2018-034b33bf

## Summary

### Background

The case involves an application filed under Section 12A of the IB Code r.w. Regulation 30A of CIRP Regulations, 2016, through the IRP for the withdrawal of C.P. (I.B) 526/2018. The initial application, C.P. (I.B) 526/2018, was filed by the Bank of Baroda under Section 7 of the IB Code due to non-payment of debt amounting to Rs. 6,46,18,619/- by the Corporate Debtor. The bench admitted the application on 2019-10-23 and appointed an IRP to take necessary actions. The IRP then took steps as per sections 13, 15, and other relevant provisions of the Code and Regulations, including making a public announcement to invite claims from creditors.

## Facts

Bank of Baroda filed C.P. (I.B) 526/2018 under Section 7 of the IB Code against Hillary Fashion Cotfab Ltd for non-payment of debt amounting to Rs. 6,46,18,619/-. The NCLT admitted the application on 2019-10-23 and appointed an IRP. The IRP made a public announcement on 2019-11-01 in Business Standard and Divya Bhaskar newspapers, inviting claims from creditors. The COC was constituted on 2019-11-21, with Bank of Baroda as the sole financial creditor. The first COC meeting was postponed from 2019-11-28 to 2019-11-29. The IRP raised concerns about the Suspended Management's lack of cooperation. The IRP visited the factory premises on 2019-11-07 and found no name/board of the Corporate Debtor. The Bank of Baroda, as the sole COC member, decided to withdraw the

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IB Code should be …

**Ratio:** The court has the discretion to allow the withdrawal of a CIRP application under Section

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**Reasoning:** The court notes that the COC, consisting solely of the Bank of Baroda, has decided to

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**Interpretation:** Section 12A allows for the withdrawal of an application admitted under Section

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**Application:** In this case, the court allows the withdrawal, but expresses concerns about the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Hillary Fashion…
- **Advocates:** NIKITA C…

## Timeline

- **2015-01-01 — SARFAESI Proceedings…**: The COC initiated proceedings under the SARFAESI Act after the Corporate Debtor's account…
- **2019-10-23 — Application A…**: The NCLT admitted the application filed by Bank of Baroda under Section 7 of the IB Code…

## 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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