# In the matter of Krushna Cotex Private Limited MA No.139-2020 in C.P.(IB) No.4510-(MB)-2018

> NCLT judgment dated 2020-03-17. Citation: TCN-2020-NCLT-01496. The case involves an application (MA 139/2020) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 17 Mar 2020
- **Citation:** TCN-2020-NCLT-01496
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krushna-cotex-private-limited-ma-no139-2020-in-cpib-no4510-mb-2018-c43670e1

## Summary

### Background

The case involves an application (MA 139/2020) filed by the Interim Resolution Professional (IRP), Mr. Harish Kant Kaushik, under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 30 A, seeking withdrawal of Corporate Insolvency Resolution Process (CIRP) initiated against Krushna Cotex Private Limited (CP 4510/2018). The CIRP was initiated on 2019-11-21. The operational creditor acknowledged receiving Rs.4,29,401 from the corporate debtor and affirmed to withdraw the application. The IRP received 'Form FA' from the operational creditor and filed the application for withdrawal on 2019-12-17.

## Facts

The Interim Resolution Professional (IRP), Harish Kant Kaushik, filed MA 139/2020 seeking withdrawal of CP 4510/2018, a Corporate Insolvency Resolution Process (CIRP) initiated against Krushna Cotex Private Limited. The CIRP was initiated on 2019-11-21. The application for withdrawal was filed under Section 12A of the IBC, 2016. The Operational Creditor acknowledged receiving Rs.4,29,401 from the Corporate Debtor and affirmed to withdraw the application. The IRP received 'Form FA' dated 2019-12-12 from the Operational Creditor and filed the application for withdrawal on 2019-12-17. The order for appointment of IRP was received on 2019-12-07 and public announcement was made on 2019-12-09. The IRP confirmed that CIRP costs were covered by a bank guarantee. The court

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## Issues and analysis

### Issue 1: Whether the application filed under Section 12A of the IBC for withdrawal of the Corporate …

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

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**Reasoning:** The court considered the fact that the Operational Creditor had acknowledged receiving

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**Interpretation:** Section 12A provides a mechanism for settling disputes and withdrawing CIRP

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**Application:** In this case, the Operational Creditor received payment, and the IRP confirmed

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## Parties

- **Judges:** Rajasekha…; RAJESH S…
- **Respondents:** Krushna Cotex…

## Timeline

- **2018-01-01 — CP(IB) F…**: C.P.(IB) No.4510/(MB)/20…
- **2019-11-21 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate…

## 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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