# In the matter of Madhur Jindal,CP (IB) No. 40/94(1)/JPR/2021

> NCLT judgment dated 2023-04-18. Citation: TCN-2023-NCLT-03753. The case involves an application under Section 60(5) of the IBC, 2016 read with Rule 11 of the…

- **Court:** NCLT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLT-03753
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/madhur-jindalcp-ib-no-40941jpr2021-6bd44dad

## Summary

### Background

The case involves 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, for withdrawal of the application. The applicant was the personal guarantor for credit facilities obtained by M/s Aarti Suitings Pvt. Ltd. and M/s Adig Jemtex Pvt. Ltd. from the Bank of Baroda.

## Facts

Mr. Madhur Jindal, represented by RP Vishnu Upadhyay, filed an application under Section 60(5) of the IBC, 2016, read with Rule 11 of the Insolvency & Bankruptcy Rules, 2019, seeking withdrawal of the application. Mr. Jindal was the personal guarantor for credit facilities obtained by M/s Aarti Suitings Pvt. Ltd. and M/s Adig Jemtex Pvt. Ltd. from the Bank of Baroda. The Bank of Baroda accepted a compromise proposal, leading to the application for withdrawal. The court granted permission for the withdrawal, and CP No. (IB)- 40/94(1)/JPR/2021 was dismissed as withdrawn.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency resolution process should be allowed based …

**Ratio:** Section 60(5) of the IBC, 2016, read with Rule 11 of the Insolvency & Bankruptcy

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**Reasoning:** The court reasoned that since the Bank of Baroda had accepted a compromise proposal, the

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**Interpretation:** Section 60(5) and Rule 11 provide a mechanism for withdrawing applications when

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

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## Parties

- **Judges:** Deep Chandr…; Ashish…
- **Appellants:** Madhur Jindal…

## Timeline

- **N/A — Application for…**: An application was filed under Section 60(5) of the IBC, 2016, read with Rule 11 of the…
- **2023-04-18 — Order…**: The court granted permission for the withdrawal of the application, and CP No. (IB)-…

## 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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