Allowed

In the matter of Chur Textiles Limited [IA-417-2024 in C.P.(IB)-553(MB)-2023]

NCLT7 Feb 2024IA-417-2024 in C.P.(IB)-553(MB)-2023

Case brief

AI extract

What is this about?

The NCLT Bench allowed withdrawal of Corporate Insolvency Resolution Process against Chur Textiles Limited. The interim resolution professional recalled the application after the original operational creditor, Kanha Trading Company, settled with the debtor before the Committee of Creditors was constituted. The corporate debtor replied and the management reinstated the Board was supervised by the m

What did the court decide?

Compliance with orders of the resolution professional (IRP) permit handing over of financial records to the concerned body and issuing of the clearance of the account of restated board and intimation

In the matter of Chur Textiles Limited [IA-417-2024 in… — Insolvency and Bankruptcy | NCLT (2024)

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IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH

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COURT – IV

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IA-417/2024 in C.P.(IB)/553(MB)/2023

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CORAM:

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MS. ANU JAGMOHAN SINGH SHRI KISHORE VEMULAPALLI MEMBER (Technical) MEMBER (Judicial)

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ORDER SHEET OF THE HEARING HELD ON 07.02.2024

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NAME OF THE PARTIES:

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Kanha Trading Company Through its Sole Proprietor Mr. Ashok Agrawal Vs Chur Textiles Limited

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SECTION: 9, 12A OF INSOLVENCY AND BANKRUPTCY CODE, 2016.

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O R D E R

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Adv. Suyesha Kakarla i/b Apex Law Partners, Ld. Counsel for Operational Creditor present. Adv. Kashmira Khedekar i/b P.G. Sabnis, Ld. Counsel for the IRP present. Mr. Aditya Chitale a/w Mr. Sumedh Rvikar i/b MNSQ Legal, Ld. Counsel for the Corporate Debtor present.

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IA-417/2024: This is an Application filed by the Interim Resolution Professional (IRP) of the Corporate Debtor under Section 12A of the IBC, 2016, for withdrawal of the Company Petition CP(IB)-553/MB/2023.

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The Applicant submits that Kanha Trading Company an operational creditor of Chur Textiles Ltd. (corporate debtor) filed the above Company Petition for initiation of CIRP of the Corporate Debtor and the same was admitted on 05.01.2024 and IRP was appointed. However, before constitution of the CoC, the Corporate Debtor approached the Operational Creditor and the matter is settled between them by entering into a Consent

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Contd….2

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07.02.2024 / pvs

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IA-417/2024 in C.P.(IB)/553(MB)/2023

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: 2 :

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Terms dated 17.01.2024. At the request of the Operational Creditor, the IRP filed this Petition seeking withdrawal of the Company Petition.

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The Applicant has filed Form FA duly signed by the original Petitioner.

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In view of the settlement between the parties before the constitution of CoC and the Form FA duly signed by the original Petitioner, this Bench allows withdrawal of the CIRP against the Corporate Debtor.

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The Corporate Debtor is free from the rigour of CIRP and the erstwhile management is reinstated to the Board. The IRP is to handover the whole financial and other records to the reinstated Board of the Company upon clearance of the account of the IRP. RoC to be intimated the withdrawal of the CIRP and normal function of the Company.

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With the foregoing, IA-417/2024 is allowed and disposed of. Accordingly, CP(IB)-553/MB/2023 is dismissed as withdrawn. File to be consigned to records.

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Sd/- Sd/- ANU JAGMOHAN SINGH KISHORE VEMULAPALLI Member (Technical)

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KISHORE VEMULAPALLI Member (Judicial)

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07.02.2024 / pvs

In the matter of Chur Textiles Limited [IA-417-2024 in C.P.(IB)-553(MB)-2023]

Case brief

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In the matter of Chur Textiles Limited [IA-417-2024 in C.P.(IB)-553(MB)-2023]

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