# In the matter of PNB Housing Finance Ltd. Vs. Nirmal Singh, CP (IB) No. 7(ND)/2022

> NCLT judgment dated 2022-03-08. Citation: TCN-2022-NCLT-03836. PNB Housing Finance Ltd. filed a petition against Nirmal Singh under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 8 Mar 2022
- **Citation:** TCN-2022-NCLT-03836
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pnb-housing-finance-ltd-vs-nirmal-singh-cp-71f6a58d

## Summary

### Background

PNB Housing Finance Ltd. filed a petition against Nirmal Singh under Section 95(1) of the Insolvency and Bankruptcy Code (IBC). An Asset Reconstruction Company (ARC) approached PNB Housing Finance Ltd. to purchase the debt payable by the Personal Guarantor.

## Facts

PNB Housing Finance Ltd. initiated proceedings against Nirmal Singh, a personal guarantor, under Section 95(1) of the IBC. An Asset Reconstruction Company (ARC) expressed interest in purchasing the debt owed by the personal guarantor. Consequently, PNB Housing Finance Ltd. decided to withdraw the petition. The court considered the submission and allowed the withdrawal, granting liberty to file a fresh application if negotiations with the ARC do not succeed. The key fact is the ARC's offer, which prompted the withdrawal of the petition.

## Issues and analysis

### Issue 1: Whether the petition filed by PNB Housing Finance Ltd. against Nirmal Singh under Section 95(1) of …

**Ratio:** A petitioner has the right to withdraw a petition if circumstances warrant such action,

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**Reasoning:** The court reasoned that since an ARC had approached the financial creditor with an offer

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**Interpretation:** The interpretation is that the court acknowledges the petitioner's right to

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

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## Parties

- **Judges:** BACHU VENKAT…; Narender Kumar…
- **Appellants:** M/s. PNB Housing…
- **Respondents:** M/s. Nirmal…

## Timeline

- **2022-03-08 — Order Del…**: Order delivered on the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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