# In the matter of Singh Medicare Institute Private Limited

> NCLT judgment dated 2024-09-11. Citation: TCN-2024-NCLT-00615. The case involves an application for withdrawal of a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 11 Sept 2024
- **Citation:** TCN-2024-NCLT-00615
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/singh-medicare-institute-private-limited-112ba141

## Summary

### Background

The case involves an application for withdrawal of a Corporate Insolvency Resolution Process (CIRP) initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Singh Medicare Institute Private Limited. An OTS proposal was accepted by the sole CoC, leading to the decision to withdraw the CIRP. An application under Section 66 of the Code, IA 948/KB/2024, was pending before the Adjudicating Authority wherein the respondents are the suspended directors of the CD for recovering an amount of Rs. 15,00,000/- given from the funds of the CD to Ms. Nidhi Singh being a related party before the commencement of the CIRP of the CD.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Singh Medicare Institute Private Limited. An One-Time Settlement (OTS) proposal was submitted by the erstwhile director of the Corporate Debtor and subsequently accepted by the sole Committee of Creditors (CoC). The CoC then decided to seek withdrawal of the entire Corporate Petition (CP) and closure of the CIRP. A Section 7 application, C.P. (IB) No.2/KB/2023, was filed. An application-IA 948/KB/2024 filed under Section 66 of the Code, is pending before the Hon'ble Adjudicating Authority wherein the respondents are the suspended directors of the CD for recovering an amount of Rs. 15,00,000/- given from the funds of the CD to Ms. Nidhi Singh being a related party before the commencement of the

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## Issues and analysis

### Issue 1: Whether the tribunal should allow the withdrawal of the Section 7 application being C.P. (IB) …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016 allows for the withdrawal of an

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**Reasoning:** The tribunal was satisfied with the grounds made in the petition for withdrawal, which

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**Interpretation:** Section 12A provides a mechanism for settling disputes and withdrawing CIRP

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**Application:** The tribunal applied Section 12A by allowing the withdrawal of the Section 7

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** Singh Medicare…; Respondent…

## Timeline

- **2023-11-30 — Tribunal…**: Order passed by the Hon'ble Tribunal to initiate corporate insolvency resolution process…
- **2024-09-11 — Hearing…**: Order sheet of the hearing…

## 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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