# In the matter of MICA Industries Limited IA. NO. 893-ND-2023 in Company Petition No. (IB)-464(ND)-2019

> NCLT judgment dated 2023-03-20. Citation: TCN-2023-NCLT-04139. The case involves an application (IA. NO. 893/ND/2023) in a corporate insolvency resolution…

- **Court:** NCLT
- **Order date:** 20 Mar 2023
- **Citation:** TCN-2023-NCLT-04139
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mica-industries-limited-ia-no-893-nd-2023-in-company-petition-no-ib-464nd-2019-16b78882

## Summary

### Background

The case involves an application (IA. NO. 893/ND/2023) in a corporate insolvency resolution process (CIRP) initiated via Company Petition No. (IB)-464(ND)/2019. The applicant, Ashika Credit Capital Limited, sought to withdraw the Section 7 application. During the pendency of the IA, Mr. Vinay Gupta uploaded an affidavit stating that the Appellate Tribunal had permitted withdrawal by the parties.

## Facts

Ashika Credit Capital Limited initiated CIRP against MICA Industries Limited via Company Petition No. (IB)-464(ND)/2019. Ashika Credit Capital Limited then filed IA. NO. 893/ND/2023 seeking to withdraw the Section 7 application. Mr. Vinay Gupta, a member of the suspended board of directors of Mica Industries Limited, uploaded an affidavit stating that the Appellate Tribunal had permitted withdrawal. The NCLAT passed an order on 20.02.2023 in Company Appeal (At) (Insolvency) No. 165 & 166 of 2023, setting aside the order dated 11.01.2023, which had admitted MICA Industries Limited to CIRP. The application to withdraw Section 7 was filed on 02.03.2023 before the constitution of CoC.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can permit the withdrawal of a Section 7 application before the …

**Ratio:** The Adjudicating Authority can exercise its inherent jurisdiction to permit withdrawal of

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**Reasoning:** The court referred to the Appellate Tribunal's observation that an application to

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**Interpretation:** This interpretation suggests that the Adjudicating Authority has the power to

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**Application:** In this case, the application to withdraw Section 7 was filed before the CoC

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Ashika Credit…
- **Respondents:** Mica Industries…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No. (IB)-464(ND)/2019 filed by Ashika Credit Capital Limited against…
- **2023-01-11 — Impugned…**: Impugned order passed, which…

## 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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