# 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-01501. 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-01501
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krushna-cotex-private-limited-ma-no139-2020-in-cpib-no4510-mb-2018-f9660950

## 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), Mr. Harish Kant Kaushik, filed MA 139/2020 under Section 12A of the IBC, seeking withdrawal of CP 4510/2018. The CIRP against Krushna Cotex Private Limited was initiated on 2019-11-21. The order for appointment of IRP was received on 2019-12-07, and a public announcement was made on 2019-12-09. The Operational Creditor acknowledged receiving Rs.4,29,401 from the Corporate Debtor and affirmed to withdraw the application via letter dated 2019-12-12. The IRP received 'Form FA' dated 2019-12-12 from the Operational Creditor and filed the withdrawal application on 2019-12-17. The Applicant/IRP confirmed that CIRP costs were covered by a bank guarantee. The court allowed the withdrawal subject to payment of Rs. 1,00,000 to the Prime

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## Issues and analysis

### Issue 1: Whether the application filed under Section 12A of the IBC for withdrawal of CP 4510/2018 by the …

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

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

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**Interpretation:** Section 12A of the IBC is interpreted to allow for withdrawal of CIRP

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

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

## Timeline

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

## 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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