# In the matter of Premier Distilleries Pvt. Ltd. MA-56-2020 in IBA-1252-2019

> NCLT judgment dated 2020-01-22. Citation: TCN-2020-NCLT-02224. The case involves an application for the withdrawal of a Company Petition filed under Section…

- **Court:** NCLT
- **Order date:** 22 Jan 2020
- **Citation:** TCN-2020-NCLT-02224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/premier-distilleries-pvt-ltd-ma-56-2020-in-iba-1252-2019-0c13e6d4

## Summary

### Background

The case involves an application for the withdrawal of a Company Petition filed under Section 12(A) of the Insolvency & Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) had been initiated against the Corporate Debtor on 08.01.2020. A settlement was reached between the Financial Creditor and the Corporate Debtor before the CIRP initiation, but this was not communicated to the Tribunal, leading to the CIRP's commencement. The Interim Resolution Professional (IRP) was appointed and a status report was filed, indicating that no claims had been received from creditors. The Financial Creditors, including Axis Bank Limited and State Bank of Hyderabad, did not file their claims. The Corporate Debtor was running a unit with employees. No Committee

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## Facts

Shriram City Union Finance Ltd initiated a Corporate Insolvency Resolution Process (CIRP) against Premier Distilleries Ltd by filing a Company Petition IBA/1252/2019. The petition was admitted on 08.01.2020. Prior to the CIRP initiation, a settlement was reached between Shriram City Union Finance Ltd and Premier Distilleries Ltd, but this settlement was not communicated to the NCLT. An Interim Resolution Professional (IRP) was appointed, and a status report indicated that no claims were received from creditors, including Axis Bank Limited and State Bank of Hyderabad, and no Committee of Creditors (CoC) was formed. Shriram City Union Finance Ltd then filed an application MA/56/2020 seeking to withdraw the Company Petition based on the settlement. The IRP had caused

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## Issues and analysis

### Issue 1: Whether the Tribunal can allow the withdrawal of a Company Petition under Section 12(A) of the …

**Ratio:** The Tribunal has inherent powers under Rule 11 of the NCLT Rules, 2016, to allow or

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**Reasoning:** The Tribunal reasoned that no prejudice would be caused to any person in the absence of a

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**Interpretation:** Section 12(A) of the Insolvency & Bankruptcy Code, 2016, allows for the

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**Application:** In this case, a settlement was reached between Shriram City Union Finance Ltd

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Shriram City…
- **Respondents:** PREMIER DISTILLERI…
- **Advocates:** S. Sathiyanarayana…; KMC. ARUN…; +1 more

## Timeline

- **2020-01-08 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2020-01-13 — Paper Publi…**: IRP caused paper publications in…

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