# In the matter of Kasya Telecommunications & IT Solutions Private Limited

> NCLT judgment dated 2023-09-25. Citation: TCN-2023-NCLT-01499. The case involves a Company Petition admitted by the Bench on 25.07.2023, directing the…

- **Court:** NCLT
- **Order date:** 25 Sept 2023
- **Citation:** TCN-2023-NCLT-01499
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kasya-telecommunications-it-solutions-private-limited-64007fb8

## Summary

### Background

The case involves a Company Petition admitted by the Bench on 25.07.2023, directing the Operational Creditor to pay CIRP costs of Rs. 5 lakh to the Interim Resolution Professional. Subsequently, the company ceased to exist, leading to an application for withdrawal of the CIRP proceedings.

## Facts

The main Company Petition was admitted on 25.07.2023, and the Operational Creditor was directed to pay Rs. 5 lakh for CIRP costs. The company ceased to exist, leading to an application for withdrawal of the CIRP proceedings. The Resolution Professional was directed to refund the balance amount if the cost incurred was less than Rs. 5 lakh, and if the cost exceeded Rs. 5 lakh, the RP had the right to claim the difference from the Operational Creditor. IA 4303/2023 was allowed and disposed of, and C.P. (IB)/563(MB)2021 was dismissed as withdrawn. The key fact is the company ceasing to exist, which prompted the withdrawal of the CIRP proceedings.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP proceedings should be allowed given that the …

**Ratio:** CIRP proceedings can be withdrawn if the underlying basis for initiating the proceedings

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**Reasoning:** The court reasoned that since the company ceased to exist, continuing the CIRP

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**Interpretation:** The interpretation is that the IBC allows for the withdrawal of CIRP

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**Application:** In this case, the court applied the principle by allowing the withdrawal of the

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Respondents:** Diligent Media…; Antara Ka…

## Timeline

- **2023-07-25 — Company Petition…**: The main Company Petition was admitted by the Bench, and the Operational Creditor was…
- **2023-09-25 — Order Sheet of…**: The hearing was held, and the court allowed the withdrawal of the CIRP proceedings and…

## 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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