Withdrawal application after CoC approval to resolution plan is unsustainable

Hem Singh Bharana Vs Pawan Doot Estate Private Limited (NCLAT Delhi)

NCLAT Delhi held that withdrawal application under section 12A of the Insolvency & Bankruptcy Code, 2016 unsustainable once CoC (Committee of Creditors) approves a resolution plan.

Facts-

On 10.05.2019, CIRP was initiated against the Corporate Debtor – Pawan Doot Estate Pvt. Ltd. by an order passed by the Adjudicating Authority. On 13.07.2019, advertisement was issued inviting Expression of Interest. Only one Resolution Plan was received, which was presented by Resolution Professional (RP) in the 10th Meeting of Committee of Creditors (CoC) dated 06.01.2020. On 17.01.2020, the CoC by 100% voting approved the Resolution Plan.

On 18.01.2020, Letter of Intent was issued by the RP to the Successful Resolution Applicant – M/s Mehar Footwear Private Limited. The Letter of Intent was unconditionally accepted by the Successful Resolution Applicant and Performance Bank Guarantee amount was deposited on 02.02.2020.

Please become a Premium member. If you are already a Premium member, login here to access the full content.