# In the matter of V. S. Texmills Pvt. Ltd. IA 222 of 2021 & IA No. 99,449 & 507-2021 in CP(IB) 299 of 2018

> NCLT judgment dated 2022-03-17. Citation: TCN-2022-NCLT-03681. The document pertains to multiple applications (IA 222/2020, IA 507/2021, IA 449/2021, and IA…

- **Court:** NCLT
- **Order date:** 17 Mar 2022
- **Citation:** TCN-2022-NCLT-03681
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/v-s-texmills-pvt-ltd-ia-222-of-2021-ia-no-99449-507-2021-in-cpib-299-of-2018-6da5f7b2

## Summary

### Background

The document pertains to multiple applications (IA 222/2020, IA 507/2021, IA 449/2021, and IA 99/2021) filed before the National Company Law Tribunal (NCLT), Ahmedabad. IA 222/2020 and IA 507/2021 were filed by M/s Chamaria Fashions Pvt. Ltd. seeking directions against Canara Bank. IA 449/2021 was filed under Section 33 of the IBC, 2016 for the liquidation of the Corporate Debtor by Canara Bank. IA 99/2021 was filed by the erstwhile Resolution Professional (RP) seeking direction against the Successful Resolution Applicant regarding litigation expenses.

## Facts

Reliance Commercial Finance Ltd filed an application against V S Texmills Pvt Ltd. M/s Chamaria Fashions Pvt. Ltd. filed applications seeking direction against Canara Bank. Canara Bank, a major stakeholder, filed an application for the liquidation of the Corporate Debtor under Section 33 of the IBC, 2016. The erstwhile RP filed an application seeking direction against the Successful Resolution Applicant for the reimbursement of litigation expenses. Canara Bank submitted a No Dues Certificate, leading to the applicant seeking withdrawal of the applications. The Successful Resolution Applicant objected to the amount claimed by the RP for litigation expenses, stating it was exorbitant (Rs. 3 Lakhs). The relevance of these facts lies in the procedural aspects of the IBC,

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## Issues and analysis

### Issue 1: Whether the applications for …

**Ratio:** An applicant is allowed to withdraw an application if the circumstances warrant it, such

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**Reasoning:** The court reasoned that since Canara Bank had submitted a No Dues Certificate, the

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**Interpretation:** This interprets the procedural aspects of IBC, allowing for withdrawal of

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**Application:** The ratio and reasoning were applied to IA 222/2020, IA 507/2021, and IA

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## Parties

- **Judges:** Dr.Deepti…; Ajai Das Me…
- **Appellants:** Reliance Commercia…
- **Respondents:** V S Texmills Pvt…

## Timeline

- **2020-01-01 — IA 222 of…**: Application filed by M/s Chamaria Fashions Pvt. Ltd. seeking direction against Canara…
- **2021-01-01 — IA 507 of…**: Application filed by M/s Chamaria Fashions Pvt. Ltd. seeking direction against Canara…

## 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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