# 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-02218. 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-02218
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/premier-distilleries-pvt-ltd-ma-56-2020-in-iba-1252-2019-0e3ce0b9

## 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's initiation, but this was not communicated to the Tribunal, leading to the CIRP's commencement. The Interim Resolution Professional (IRP) was appointed and directed to file a status report.

## Facts

Shriram City Union Finance Ltd initiated a Corporate Insolvency Resolution Process (CIRP) against Premier Distilleries Ltd under the Insolvency & Bankruptcy Code, 2016. The CIRP was initiated on 08.01.2020. Prior to the CIRP's 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 application was filed to withdraw the company petition. The Interim Resolution Professional (IRP) was appointed and filed a status report indicating that no claims had been received from creditors and no Committee of Creditors (CoC) had been formed. The secured Financial Creditors failed to file their claim before the IRP. The applicant relied on the Supreme Court's decision in

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Company Petition should be allowed, considering 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:** The legal issue revolves around the interpretation of Section 12(A) of the

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

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Shriram City…
- **Respondents:** PREMIER DISTILLERI…

## Timeline

- **2020-01-08 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2020-01-13 — Paper Publi…**: IRP caused paper publication in 'Dinamani' (Tamil edition) and 'Business Standard'…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(a) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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