# In the matter of MS Biotech Private Limited IA No. 246-2019 in CP (IB) No. 243-7-HDB-2018

> NCLT judgment dated 2019-03-28. Citation: TCN-2019-NCLT-04292. The case involves an application (IA No. 246/2019) filed by the Financial Creditor, Vijayanagar…

- **Court:** NCLT
- **Order date:** 28 Mar 2019
- **Citation:** TCN-2019-NCLT-04292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ms-biotech-private-limited-ia-no-246-2019-in-cp-ib-no-243-7-hdb-2018-dee6eefc

## Summary

### Background

The case involves an application (IA No. 246/2019) filed by the Financial Creditor, Vijayanagar Sugar Private Limited, seeking permission to withdraw a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 against the Corporate Debtor, MS Biotech Private Limited. The application also seeks to set aside the order dated 15.03.2019, which admitted the petition and appointed an Interim Resolution Professional (IRP). The matter was compromised between the Financial Creditor and the Corporate Debtor, and a Memorandum of Understanding (MoU) was enclosed with the application.

## Facts

Vijayanagar Sugar Private Limited, the Financial Creditor, filed a petition under Section 7 of the IBC, 2016 against MS Biotech Private Limited, the Corporate Debtor. The petition was admitted by the Tribunal on 15.03.2019, and an Interim Resolution Professional (IRP) was appointed. Subsequently, the Financial Creditor filed IA No. 246/2019 seeking permission to withdraw the petition, stating that the matter had been compromised with the Corporate Debtor. The IRP, Mr. Sridhar Venkataraya Sundararaja, was present and reported that the Committee of Creditors (CoC) had not yet been constituted. The Financial Creditor's counsel argued that under Rule 11 of the NCLT Rules, 2016, the Tribunal has the power to grant permission for withdrawal since the CoC was not formed. The

…

## Issues and analysis

### Issue 1: Whether the Tribunal has the power to grant permission to the Financial Creditor to withdraw the …

**Ratio:** Rule 11 of the NCLT Rules, 2016 provides the Tribunal with inherent powers to allow or

…

**Reasoning:** The Tribunal relied on the Hon'ble Apex Court's decision in Swiss Ribbons Private

…

**Interpretation:** Rule 11 of the NCLT Rules grants the Tribunal inherent powers to address

…

**Application:** In this case, since the CoC had not yet been constituted, the Tribunal applied

…

## Parties

- **Judges:** Ratakonda…
- **Appellants:** Vijaynagar Sugar…
- **Respondents:** MS Biotech…
- **Advocates:** A.Venka…; Sahithi N…; +1 more

## Timeline

- **2019-03-15 — Petition Ad…**: The Tribunal admitted the petition filed by the Financial Creditor under Section 7 of the…
- **2019-03-28 — Order for Wit…**: The Tribunal allowed the application for withdrawal of the petition and set aside the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/ms-biotech-private-limited-ia-no-246-2019-in-cp-ib-no-243-7-hdb-2018-dee6eefc