The court permitted withdrawal of a Corporate Insolvency Resolution Process application under the Insolvency and Bankruptcy Code, affirming the applicant's right to withdraw before CIRP commencement.

IN THE NATIONAL COMPANY LAW TRIBUNAL

NEW DELHI BENCH, COURT-III

Under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 and Rule 11 of the National Company Law Tribunal

Rules, 2016.

IA-2117/2025

In

IB-359(PB)/2021

IN THE MATTER OF IB-359(PB)/2021:

Piramal Enterprises Limited .… Financial Creditor

Vs.

Kay Jay Leasing ... Corporate Debtor

AND IN THE MATTER OF IA-2117/2025:

Piramal Enterprises Limited .… Applicant

Vs.

Kay Jay Leasing ... Respondent

Order Pronounced On: 04.06.2025

CORAM:

SHRI BACHU VENKAT BALARAM DAS

HON’BLE MEMBER (JUDICIAL)

DR. SANJEEV RANJAN

HON’BLE MEMBER (TECHNICAL)

PRESENT:

For Applicant : Mr. Nikhil Mehndiratta, Ms. Agastya Sen, Ms. Nidhisha

Choksi, Advs.

For : Mr. Vikas Dutta, Mr. Siddharth Silwal, Ms. Shivani

Respondent Sharma Advs.

ORDER

PER: BACHU VENKAT BALARAM DAS, MEMBER (JUDICIAL)

1. The instant Application has been filed by Piramal Enterprises Limited, the Applicant herein, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 and Rule 11 of the National Company Law Tribunal Rules, 2016 seeking withdrawal of the Application filed under Section 7 of the Code bearing IB-359(PB)/2021.

2. The Prayers in the present Application are as follows:

“A. Allow the present Application and permit the Applicant to withdraw C. P. IB. No. 359 of 2021;

B. Pass such other or further order(s) as this Hon’ble Tribunal may deem fit in the facts and circumstances of the present case.”

3. It is stated that the Applicant/Financial Creditor filed IB-

359(PB)/2021, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP against Kay Jay Leasing, the Respondent/Corporate Debtor herein.

4. It is stated that the principal borrower, Hema Engineering Industries Limited, was admitted into CIRP vide order dated 05.04.2021 passed by this Adjudicating Authority, in an application filed by P. R. Rolling Mills Private Limited, under Section 9 of the IBC, 2016. It is further stated that during the pendency of the application filed under Section 7, the Respondent herein, filed I. A. No. 1452 of 2023 under Section 10A of the Code, 2016, seeking dismissal of Section 7 application. The Applicant also filed I. A. No. 1547 of 2023 seeking rectification of the date of default as mentioned in Section 7 Application. This Adjudicating Authority vide order dated 05.12.2023 allowed I. A. No. 1547 of 2023 and held that the date of default to be 05.04.2021, which is the date of initiation of the CIRP against the Principal Borrower.

5. The said order was assailed before the Hon’ble NCLAT in Company Appeal (AT) (INS) No. 175 and 176 of 2024 and Hon’ble NCLAT vide order dated 26.07.2024 remanded the matters back to this Adjudicating Authority for reconsideration of I. A. No. 1547 of 2023 and I. A. No. 1452 of 2023.

6. It is submitted that the Applicant has now decided not to pursue the present proceedings filed under Section 7 of the Code, 2016 and therefore has filed the present application seeking to withdraw the Section 7 application.

7. It is also submitted that the CIRP has not yet commenced against the Respondent/Corporate Debtor.

8. The present application was listed on 13.05.2025, wherein this Adjudicating Authority noticed that IA-2117/2025 is supported by an affidavit of Mr. Abhijeet Verma stated to be working as Principal, Value Enhancement Group of the Applicant Company. The Applicant was directed to file the copies of the authorization and Board resolution authorizing the deponent to file the present application.

9. In compliance with the order dated 13.05.2025, the Applicant placed on record two copies of the Board resolution dated 01.09.2022 of Piramal Enterprises Limited and the Board resolution dated

03.06.2022 of PHL Fininvest Private Limited.

10. We have heard the submissions of Mr. Nikhil Mehndiratta, Ld.

Counsel appearing on