The NCLAT upheld the Adjudicating Authority's rejection of the ...

Insolvency law: Withdrawal of CIRP by non-applicants not allowed; inherent powers for malicious cases.

December 23, 2024

Case Laws IBC AT

The NCLAT upheld the Adjudicating Authority's rejection of the appellant's prayer to recall the admission order. Regarding withdrawal of CIRP u/s 12A of the IBC, the NCLAT held that since the Section 7 application was filed by respondents 6-9, and not by the applicants who initiated it, compliance with Section 12A read with Regulation 30A cannot be made, and withdrawal u/s 12A is not permissible. However, the NCLAT observed that if the Adjudicating Authority concludes that the ingredients of Section 65 are attracted (application filed with fraudulent/malicious intent), it can exercise its inherent jurisdiction to close the CIRP proceedings. Relying on the Supreme Court's judgment in SBI vs. Consortium of Murari Lal Jalan & Florian Fritsch, the NCLAT held that the Adjudicating Authority can exercise inherent powers in appropriate cases. Consequently, the appeal was disposed of.

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The NCLAT upheld the Adjudicating Authority's rejection of the ...

Insolvency law: Withdrawal of CIRP by non-applicants not allowed; inherent powers for malicious cases.

December 23, 2024

Case Laws IBC AT

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