# 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-03845. PNB Housing Finance Ltd. filed a petition against Nirmal Singh, a personal guarantor, under…

- **Court:** NCLT
- **Order date:** 8 Mar 2022
- **Citation:** TCN-2022-NCLT-03845
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pnb-housing-finance-ltd-vs-nirmal-singh-cp-994376a7

## Summary

### Background

PNB Housing Finance Ltd. filed a petition against Nirmal Singh, a personal guarantor, 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. filed a petition against Nirmal Singh, who is the personal guarantor, under Section 95(1) of the IBC. An Asset Reconstruction Company (ARC) approached PNB Housing Finance Ltd. to purchase the debt payable by the personal guarantor. Consequently, PNB Housing Finance Ltd. decided to withdraw the petition against Nirmal Singh. The NCLT allowed the withdrawal, dismissing the petition but granting PNB Housing Finance Ltd. the liberty to refile if negotiations with the ARC fail.

## Issues and analysis

### Issue 1: Whether the petition filed by PNB Housing Finance Ltd. against Nirmal Singh, a personal guarantor, …

**Ratio:** A petitioner is generally allowed to withdraw a petition if they no longer wish to pursue

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**Reasoning:** The court allowed the withdrawal because the financial creditor, PNB Housing Finance

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**Interpretation:** The interpretation is that a financial creditor has the right to withdraw a

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**Application:** In this case, the ratio and reasoning were applied to allow PNB Housing Finance

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## Parties

- **Judges:** BACHU VENKAT…; Narender Kumar…
- **Appellants:** PNB Housing…
- **Respondents:** Nirmal…

## Timeline

- **2022-03-08 — Order Del…**: Order delivered by the NCLT allowing the withdrawal of the petition filed by PNB Housing…

## 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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