ABHISHEK SINGH versus HUHTAMAKI PPL LTD. & ANR.

ABHISHEK SINGH versus HUHTAMAKI PPL LTD. & ANR.

Section 12A permits withdrawal of admitted applications and, read with substituted Regulation 30A, withdrawal applications may be entertained before constitution of the Committee of Creditors through the Interim Resolution Professional; Regulation 30A is binding on the Tribunal and complements Section 12A; where settlement was concluded and payment made before formation of CoC and procedural safeguards in Regulation 30A are met, the NCLT should have allowed withdrawal; payments allegedly in breach of moratorium, if established, are recoverable in appropriate proceedings but do not preclude withdrawal under Section 12A and Regulation 30A.

Parties
Appellant: Abhishek Singh; Operational Creditor / Respondent No.1: Huhtamaki PPL Ltd.; Corporate Debtor / Respondent No.2: Manpasand Beverages Ltd.
Jurisdiction
India
Judgment Date
28 March 2023
Procedural Posture
Civil Appeal / Appeal to Supreme Court Against NCLT Order Dated 13.04.2021 (i.a. No.196 of 2021 Arising Out of C.p.(i.b.) No.503 of 2019)
Outcome
Appeal allowed.
Legal Topics
Section 12 a IBC, Regulation 30 a IBBI Regulations, Withdrawal of CIRP, Moratorium (section 14 Ibc), Committee of Creditors
Insolvency and Bankruptcy Company Law Tribunal Procedure Section 12 a IBC Regulation 30 a IBBI Regulations Withdrawal of CIRP Moratorium (section 14 Ibc) Committee of Creditors

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Parties

Abhishek Singh

Appellant

Huhtamaki PPL Ltd.

Operational Creditor / Respondent No.1

Manpasand Beverages Ltd.

Corporate Debtor / Respondent No.2

Procedural Posture

Civil Appeal / Appeal to Supreme Court Against NCLT Order Dated 13.04.2021 (i.a. No.196 of 2021 Arising Out of C.p.(i.b.) No.503 of 2019)

Legal Issues

  1. 1 Whether Section 12A permits withdrawal of applications admitted under sections 7,9 or 10 before constitution of the Committee of Creditors
  2. 2 Whether Regulation 30A of the IBBI Regulations is binding and permits withdrawal before constitution of CoC
  3. 3 Whether payments made after initiation of CIRP in purported settlement violate the moratorium and render withdrawal impermissible

Ratio Decidendi

Section 12A permits withdrawal of admitted applications and, read with substituted Regulation 30A, withdrawal applications may be entertained before constitution of the Committee of Creditors through the Interim Resolution Professional; Regulation 30A is binding on the Tribunal and complements Section 12A; where settlement was concluded and payment made before formation of CoC and procedural safeguards in Regulation 30A are met, the NCLT should have allowed withdrawal; payments allegedly in breach of moratorium, if established, are recoverable in appropriate proceedings but do not preclude withdrawal under Section 12A and Regulation 30A.

Court Disposition

Appeal allowed.

Orders

  • Impugned NCLT order dated 13.04.2021 set aside
  • Application under Section 12A of IBC allowed