# In the matter of Privilege Healthcare Services Pvt. Ltd. I. A. No. 1181 of 2020 in C. P. No. 1902/I&B/2019

> NCLT judgment dated 2020-09-15. Citation: TCN-2020-NCLT-00626. The case involves an application filed by Mr. Shailesh Bhalchandra Desai, the Resolution…

- **Court:** NCLT
- **Order date:** 15 Sept 2020
- **Citation:** TCN-2020-NCLT-00626
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/privilege-healthcare-services-pvt-ltd-i-a-no-1181-of-2020-in-c-p-no-1902ib2019-1434cb69

## Summary

### Background

The case involves an application filed by Mr. Shailesh Bhalchandra Desai, the Resolution Professional (RP) of Privilege Healthcare Services Pvt. Ltd, seeking approval for the withdrawal of Corporate Insolvency Process initiated by Union Bank of India (erstwhile Corporate Bank). The Corporate Insolvency Resolution Process (CIRP) was initiated via C.P. No. 1902/2019, which was admitted on 04.12.2019. The application for withdrawal is based on Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A of IBBI Regulations, 2016, due to a settlement between the parties.

## Facts

Union Bank of India (erstwhile Corporate Bank) initiated Corporate Insolvency Resolution Process (CIRP) against Privilege Healthcare Services Pvt. Ltd. via C.P. No. 1902/2019, which was admitted on 04.12.2019. Ms. Deepa Kabra Rathi was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Shailesh Bhalchandra Desai as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed. Union Bank of India and PMC bank issued OTS (One Time Settlement) sanction letters for the settlement of loan dues. The 5th CoC meeting was held on 14.08.2020, where the withdrawal of the CIRP was discussed. The CoC approved the withdrawal with 100% voting share. The applicant confirmed compliance with the OTS sanction letters and that the fees

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of the Corporate Insolvency Resolution …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The court considered the submission that the Committee of Creditors (CoC) had approved

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**Interpretation:** Section 12A provides a mechanism for withdrawing a CIRP application if a

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**Application:** In this case, the applicant sought to withdraw the CIRP based on a settlement

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## Parties

- **Judges:** SUCHITRAKAN…; Shyam Babu…
- **Appellants:** Shailesh Bhalchand…
- **Respondents:** Privilege…

## Timeline

- **2019-12-04 — Admission of C.P. No.…**: Corporate Insolvency Resolution Process (CIRP) initiated by Union Bank of India against…
- **2020-06-09 — Appointment…**: Mr. Shailesh Bhalchandra Desai was appointed as the Resolution Professional (RP) after…

## 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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