# In the matter of Nair Coal Services Pvt. Ltd. MA 3347-2019 in C.P.(IB) 2596-(MB)-2019

> NCLT judgment dated 2019-10-24. Citation: TCN-2019-NCLT-00830. The case pertains to MA 3347/2019 filed in C.P No (IB) 2596/(MB)/2018, seeking withdrawal of CP…

- **Court:** NCLT
- **Order date:** 24 Oct 2019
- **Citation:** TCN-2019-NCLT-00830
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nair-coal-services-pvt-ltd-ma-3347-2019-in-cpib-2596-mb-2019-18f34a5d

## Summary

### Background

The case pertains to MA 3347/2019 filed in C.P No (IB) 2596/(MB)/2018, seeking withdrawal of CP 2596/2019 under section 12A of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor, Nair Coal Services Private Limited, following an order dated 10.10.2019. The admission order was communicated to the Applicant on 15.10.2019. The Financial Creditor intimated consent terms executed by the Financial Creditor and the Corporate Debtor vide email dated 15.10.2019.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Nair Coal Services Private Limited. An application, MA 3347/2019, was filed under Section 12A of the IBC seeking withdrawal of the CIRP. The application was filed before the formation of the Committee of Creditors (CoC). The Financial Creditor and the Corporate Debtor executed consent terms. The admission order for CIRP was communicated on 15.10.2019. The Financial Creditor intimated the consent terms via email on 15.10.2019. The Tribunal allowed the withdrawal application subject to the Corporate Debtor paying ₹1,00,000/- to the Prime Minister's National Relief Fund by 13.11.2019. Failure to pay would invalidate the order. The CIRP costs, if any, are to be borne by the Financial Creditor. The key

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

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

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**Reasoning:** The Tribunal considered that the application was filed before the formation of the CoC

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**Interpretation:** Section 12A provides a mechanism for withdrawal of CIRP applications. The

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**Application:** In this case, the application was filed before the CoC was formed, and the

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## Parties

- **Judges:** Bhaskara Pantula…; RAJESH S…
- **Appellants:** Shruti Vinimay…
- **Respondents:** Nair Coal…; Nair Coal…

## Timeline

- **2019-10-10 — Order for Initiation of…**: The Bench ordered the initiation of the Corporate Insolvency Resolution Process (CIRP)…
- **2019-10-13 — Consent Terms…**: The Financial Creditor intimated the consent terms executed by the Financial Creditor and…

## 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)

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