# In the matter of Singh Medicare Institute Private Limited

> NCLT judgment dated 2024-09-11. Citation: TCN-2024-NCLT-00624. The case involves an application for withdrawal of a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 11 Sept 2024
- **Citation:** TCN-2024-NCLT-00624
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/singh-medicare-institute-private-limited-448dc517

## Summary

### Background

The case involves an application for withdrawal of a Corporate Insolvency Resolution Process (CIRP) initiated against Singh Medicare Institute Private Limited. An OTS (One-Time Settlement) proposal was accepted by the sole Committee of Creditors (CoC). The CoC decided to seek withdrawal of the entire CP and closure of the process. An application under Section 66 of the Code 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 OTS proposal was submitted by the erstwhile director of the Corporate Debtor and accepted by the sole Committee of Creditors (CoC). The CoC decided to seek withdrawal of the Corporate Petition (CP) and closure of the CIRP. A Section 7 application was filed, and the CP was admitted on 30.11.2023. A Resolution Professional (RP) was appointed. 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

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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 the withdrawal of CIRP proceedings if the

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**Application:** The CoC approved the withdrawal of the Section 7 application due to the

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## Parties

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

## Timeline

- **2023-11-30 — Admission…**: The Corporate Petition…
- **2024-09-11 — Hearing…**: Order sheet of the…

## 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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