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2019 (4) TMI 35 - Tri - Insolvency and BankruptcyApplication for withdrawal under section 12A of the Insolvency and Bankruptcy Code, 2016 - seeking appropriate directions to the directors of the corporate debtor to defray the expenses of CIRP process and consequently remove the corporate debtor from the clutches of the IBC - HELD THAT - Since regulation 30A envisages that an application for withdrawal under section 12A shall be submitted to the interim resolution professional or the resolution professional as the case may be in Form FA of the schedule before issue of invitation for expression of interest under regulation 36A and when such conditional clause has been mentioned in the regulation regarding section 12A, this Bench cannot pass an order under section 60(5) of the Code ignoring the conditional clause in regulation 30A of the IRPCP Regulations to submit application under section 12A of the Code before issue of invitation for expression of interest. Application dismissed as misconceived.
Issues: Application for withdrawal under section 12A of the Insolvency and Bankruptcy Code, 2016.
In the judgment delivered by the National Company Law Tribunal, Chennai, the Resolution Professional filed an application seeking the withdrawal of the Corporate Insolvency Resolution Process (CIRP) under section 60(5)(a) of the IBC, 2016. The application was based on the settlement of all claims after the publication of expression of interest (EOI), contending that section 12A of the Code, along with regulation 30A and Form FA of the Insolvency and Bankruptcy Board of India Regulations, should not apply in this case. The Resolution Professional requested directions to the directors of the corporate debtor to defray the CIRP expenses and remove the corporate debtor from the IBC's jurisdiction. However, the Tribunal noted that regulation 30A mandates that an application for withdrawal under section 12A must be submitted in Form FA before the issue of invitation for EOI under regulation 36A. The Bench emphasized that the conditional clause in regulation 30A regarding section 12A cannot be disregarded when considering an order under section 60(5) of the Code. As the Resolution Professional failed to comply with the procedural requirements outlined in the regulations, the Tribunal dismissed the application (M. A. No. 536 of 2018) as misconceived, highlighting the importance of adhering to the statutory provisions and procedural rules in insolvency proceedings.
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