# In the matter of Excel Timbers Pvt. Ltd.

> NCLT judgment dated 2023-06-22. Citation: TCN-2023-NCLT-02850. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Excel…

- **Court:** NCLT
- **Order date:** 22 Jun 2023
- **Citation:** TCN-2023-NCLT-02850
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/excel-timbers-pvt-ltd-2bb17622

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Excel Timbers Private Limited based on an application by Dhanlaxmi Bank Ltd. The CIRP was initially ordered by the Tribunal. However, the financial creditor, Dhanlaxmi Bank Ltd., subsequently decided to withdraw the CIRP application after their dues were settled within the OTS (One-Time Settlement) period. The application for withdrawal was supported by 100% voting rights in the Committee of Creditors (CoC).

## Facts

Dhanlaxmi Bank Ltd. initiated CIRP against Excel Timbers Private Limited. The CIRP was ordered by the Tribunal based on an application under Section 7 of the IBC. Dhanlaxmi Bank Ltd., being the sole financial creditor, later settled the dues with Excel Timbers Pvt Ltd. under an OTS scheme. Consequently, Dhanlaxmi Bank Ltd. submitted form-FA to the Adjudicating Authority to withdraw their claims. A second CoC meeting was held on 2023-04-10, where Dhanlaxmi Bank Ltd., holding 100% voting rights, approved the withdrawal of the CIRP application. The IRP certified that all CIRP costs had been paid. The Tribunal considered these facts and allowed the withdrawal application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC, 2016, should be …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of a CIRP application with the

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**Reasoning:** The court reasoned that the financial creditor, Dhanlaxmi Bank Ltd., had settled the dues

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**Interpretation:** Section 12A provides a mechanism for settling disputes outside of the formal

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**Application:** In this case, the financial creditor, holding 100% voting rights, consented to

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Respondents:** Excel Timbers Pvt…; S ESW…
- **Advocates:** Akhil S…; ESWA…; +4 more

## Timeline

- **2023-02-10 — CIRP Ord…**: Tribunal passed an order for CIRP against M/s. Excel Timbers Private Limited in…
- **2023-04-03 — Form-FA Sub…**: Dhanlaxmi Bank Ltd. submitted form-FA to the Adjudicating Authority stating their intent…

## 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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