# In the matter of Akash Jindal, CP (IB) No. 80/94(1)/JPR/2021

> NCLT judgment dated 2023-04-18. Citation: TCN-2023-NCLT-03748. The case involves an application for withdrawal of an application under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLT-03748
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/akash-jindal-cp-ib-no-80941jpr2021-63e89e57

## Summary

### Background

The case involves an application for withdrawal of an application under Section 60(5) of the IBC, 2016 read with Rule 11 of the Insolvency & Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The applicant was the personal guarantor for credit facilities obtained by M/s Adig Jemtex Pvt. Ltd. from the Bank of Baroda.

## Facts

Mr. Akash Jindal, the applicant, was the personal guarantor for credit facilities obtained by M/s Adig Jemtex Pvt. Ltd. from the Bank of Baroda. An application was filed under Section 60(5) of the IBC, 2016 read with Rule 11 of the Insolvency & Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. Subsequently, a compromise proposal was accepted by the Bank of Baroda. Based on this compromise, the applicant sought to withdraw the initial application. The court granted permission for the withdrawal, leading to the dismissal of CP No. (IB)-80/94(1)/JPR/2021.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the initial application under Section 60(5) of the IBC, …

**Ratio:** A compromise between parties can form a valid basis for withdrawing an application before

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**Reasoning:** The court reasoned that the compromise proposal accepted by the Bank of Baroda provided

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**Interpretation:** The interpretation of Section 60(5) of the IBC, 2016 and Rule 11 of the

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**Application:** In this specific case, the compromise proposal accepted by the Bank of Baroda

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## Parties

- **Judges:** Deep Chandr…; Ashish…
- **Appellants:** Akash J…
- **Respondents:** M/s Adig Jemtex…; Bank of B…

## Timeline

- **2021-01-01 — CP No. (IB)-80/94(1)/JPR…**: Initial filing of CP No.…
- **2023-04-18 — Order Da…**: Order issued dismissing CP No. (IB)-80/94(1)/JPR/2021 as withdrawn, based on compromise…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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