Petition under IBC 2016 cannot be withdrawn by mutual settlement: NCLT

By CS Anjali Gorsia Corporate Law Judiciary June 16, 2017

TaxGuru Citation: 2017 taxguru.in 692
Case Name: Re. Parker Hannifin India Private Limited (NCLT Kolkata)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: NCLT

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CS ANJALI GORSIA

NCLT REJECTS WITHDRAWAL PETITION (DATED 29/05/2017): EVEN AFTER PARTIES AGREES FOR SETTLEMENTS?

Insolvency and Bankruptcy Code 2016, is the Federal Law for the benefit and relief of creditors and their debtors in cases in which the latter are unable to / unwilling to pay their debts.

An application for commencement of Corporate Insolvency Resolution to “National Company tribunal Law” (NCLT) which is designated as the Adjudicating Authority for the purpose dealing with insolvency, bankruptcy, winding up of companies, LLP, corporate debtors. Appeals from orders of NCLT lies with the NCLAT can be made process can be filed by

1. Financial Creditor (FC)(under section 7 of IBC),

2. Operational Creditor (OC)(under section 8 and 9 of IBC) or

3. Corporate Debtor (CD)(where corporate Debtor has committed a default under section 6 of the IBC)

The corporate insolvency process shall commence from the date of admission of the application. However, the NCLT may admit or reject the application following grounds under the provisions of IBC, within 14 days of receipt of application:

NCLT shall admit the application if the following requirements are fulfilled: –

NCLT may reject the application in the following circumstances:

(a) The application is complete.

(b) There is no repayment of the unpaid operational debt.