# In the matter of Indian Treat Ltd. MA 736-2018 In C.P. 4332-I&BP-NCLT-MAH-2018

> NCLT judgment dated 2019-03-11. Citation: TCN-2019-NCLT-04484. Dena Bank, the Financial Creditor, initiated the Corporate Insolvency Resolution Process (CIRP)…

- **Court:** NCLT
- **Order date:** 11 Mar 2019
- **Citation:** TCN-2019-NCLT-04484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indian-treat-ltd-ma-736-2018-in-cp-4332-ibp-nclt-mah-2018-a844ef0a

## Summary

### Background

Dena Bank, the Financial Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against Indian Treat Ltd., the Corporate Debtor, by filing Company Petition No. 4332 of 2018 under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor was admitted into CIRP on 30.01.2019. Dena Bank subsequently sought to withdraw the petition under Section 12A of the IBC, citing the recovery of a portion of the outstanding dues through the sale of securities charged to the Financial Creditor under the SARFAESI Act.

## Facts

Dena Bank initiated CIRP against Indian Treat Ltd. by filing a Section 7 petition, which was admitted on 30.01.2019. Prior to the admission of the Section 7 petition, Dena Bank, as the Financial Creditor, sold the securities charged to it by the Corporate Debtor under the SARFAESI Act, recovering Rs. 9,35,89,650/-, which constituted 30.56% of the outstanding dues. The remaining security, the Plant & Machinery, was valued at approximately Rs. 35 lakhs. Dena Bank sought to withdraw the CIRP application under Section 12A of the IBC, citing the recovery and the fact that the directors of the Corporate Debtor had given personal guarantees, making further proceedings against the Corporate Debtor less beneficial. The Zonal Officer of Dena Bank had granted approval for the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an application admitted under …

**Ratio:** The NCLT, in exercise of its inherent powers under Rule 11 of the NCLT Rules, 2016, can

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**Reasoning:** The court reasoned that the Supreme Court in Swiss Ribbons case clarified that at any

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**Interpretation:** This interpretation clarifies that the absence of a CoC does not preclude the

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**Application:** In this case, since the CoC was not constituted, Dena Bank directly approached

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Dena…
- **Respondents:** Indian Trea…

## Timeline

- **2018-01-01 — Company Petiti…**: Company Petition No. 4332 of 2018 filed…
- **2019-01-30 — CIRP Admi…**: Corporate Debtor put on CIRP by an order of this Bench on a section 7 Petition filed by…

## 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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