# In the matter of Sky Build Pvt. Ltd. IA 589-2023 in C.P.(IB)1063-MB-2019

> NCLT judgment dated 2023-02-20. Citation: TCN-2023-NCLT-04526. The application IA 589/2023 was filed by the Resolution Professional for withdrawal of the…

- **Court:** NCLT
- **Order date:** 20 Feb 2023
- **Citation:** TCN-2023-NCLT-04526
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sky-build-pvt-ltd-ia-589-2023-in-cpib1063-mb-2019-8b7929c1

## Summary

### Background

The application IA 589/2023 was filed by the Resolution Professional for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The CIRP was initiated on 13.12.2019. Upon invitation of claims, only one claim from the original petitioner was received, leading to the formation of a Committee of Creditors (CoC) with only one member. In May 2020, the managing director of the Corporate Debtor passed away, hindering the applicant's ability to gather further details about the Corporate Debtor. The CoC, during its 3rd meeting, resolved to withdraw the CIRP with a 100% vote. An earlier application, IA 2397/2020, filed under section 12 A of the Insolvency and Bankruptcy Code (IBC) for withdrawal, was dismissed due to the

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## Facts

The CIRP against Sky Build Pvt Ltd was initiated on 2019-12-13. Only one claim was received in response to the invitation for claims. The Committee of Creditors (CoC) consisted of only one member. The managing director of Sky Build Pvt Ltd, Mr. Suresh Shrrof, passed away in May 2020. The CoC resolved to withdraw the CIRP with a 100% vote. An earlier application for withdrawal, IA 2397/2020, was dismissed due to the applicant's ill health. The present application, IA 589/2023, was filed for withdrawal of the CIRP. The applicant is the Resolution Professional. The CoC voted for withdrawal due to the lack of information and the death of the managing director. The court condoned the delay in filing the application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP should be allowed given the circumstances, …

**Ratio:** The court has the discretion to allow the withdrawal of the CIRP if it is satisfied that

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**Reasoning:** The court considered the fact that only one claim was received, the managing director of

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**Interpretation:** The legal issue involves interpreting the provisions of the IBC relating to the

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**Application:** In this case, the court applied the ratio by considering the specific facts,

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## Parties

- **Judges:** SH. SHYAM BABU…; H.V. Subb…
- **Respondents:** Sky Build Pvt.…

## Timeline

- **2019-12-13 — CIRP Init…**: CIRP was initiated…
- **2020-05-01 — Death of Managing…**: The managing director of the Corporate…

## 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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