# In the matter of Kerkar Fitness Pvt. Ltd. TCP No. 417-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-10-22. Citation: TCN-2018-NCLT-00520. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 22 Oct 2018
- **Citation:** TCN-2018-NCLT-00520
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kerkar-fitness-pvt-ltd-tcp-no-417-ibc-nclt-mb-mah-2017-9a755739

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by an Operational Creditor, Deepak Jain, HUF, against M/s. Kerkar Fitness Private Limited, the Corporate Debtor. The petition was initially admitted, and an Interim Resolution Professional (IRP), Mr. Jitendrakumar R. Yadav, was appointed, who was later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC). Subsequently, the Operational Creditor and the Corporate Debtor settled their dispute amicably during the Corporate Insolvency Resolution Process (CIRP) period. The IRP constituted a CoC with only one member, the Operational Creditor, as no other financial creditor filed a claim. The CoC then voted in favor of withdrawing the insolvency petition.

## Facts

Deepak Jain, HUF, through its Karta, Mr. Deepak Jain, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Kerkar Fitness Private Limited, the Corporate Debtor. The petition was admitted on 2018-03-22, and Mr. Jitendrakumar R. Yadav was appointed as the Interim Resolution Professional (IRP). The IRP was later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC) in its first meeting held on 2018-05-29. A public announcement was made on 2018-04-27 after the admission of the petition. The Operational Creditor submitted a claim to the IRP. The Operational Creditor and the Corporate Debtor settled their dispute amicably during the CIRP period. The IRP constituted a CoC with only one member, the Operational

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an application under Section 9 of …

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

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**Reasoning:** The court observed that the CoC, with a 100% voting share, had accepted the withdrawal of

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**Interpretation:** Section 12A provides a mechanism for withdrawing an insolvency application if a

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**Application:** In this case, the CoC, consisting solely of the Operational Creditor, approved

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Deepak Jai…
- **Respondents:** M/s. Kerkar…

## Timeline

- **2018-03-22 — Admission of…**: The petition filed by the Operational…
- **2018-04-27 — Public Annou…**: A public announcement was made…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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