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

> NCLT judgment dated 2023-04-18. Citation: TCN-2023-NCLT-03760. 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-03760
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/madhur-jindalcp-ib-no-40941jpr2021-ce0df8ae

## 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 heard Mr. Amol Vyas, appearing for the Applicant, and Mr. Vishnu Upadhyay, RP, who was present in person. The key fact is the acceptance of the compromise proposal by the Bank of Baroda, which prompted the withdrawal application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal under Section 60(5) of the IBC, 2016, read with Rule 11 of …

**Ratio:** The legal principle applied is that an application can be withdrawn if a compromise

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

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

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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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…
- **N/A — Compromise P…**: The application was moved because the Bank of…

## 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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