Company Petition Withdrawn Under IBC Section 60(5) - Compliance and Maintainability Key

The Tribunal allowed the withdrawal of the Company Petition (CP(IB)/03/KOB/2021) under Section 60(5) of the IBC, 2016. The Operational Creditor's application was granted after addressing maintainability concerns raised by the Respondent/Corporate Debtor. Compliance with procedural requirements, including the payment of costs, was crucial in the decision. The Tribunal emphasized that the Applicant fulfilled all conditions, leading to the allowance of the withdrawal application.

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Issues Involved:
Withdrawal of Company Petition under Section 60(5) of IBC, 2016 based on maintainability concerns raised by Respondent/Corporate Debtor.

Analysis:

Issue 1: Withdrawal of Company Petition under Section 60(5) of IBC, 2016
The case involved an application filed by M/s. Thankam Cashew Factory seeking withdrawal of the Company Petition (CP(IB)/03/KOB/2021) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor, represented by a Power of Attorney Holder, cited merit in the Respondent/Corporate Debtor's contention regarding the maintainability of the petition. The Respondent had raised objections related to the nature of the petitioner being a proprietary concern and the authority of a Power of Attorney Holder to represent an Operational Creditor in such proceedings.

Issue 2: Compliance with Procedural Requirements
During the proceedings, the Operational Creditor failed to initially produce proof of payment of costs amounting to Rs. 25,000 within the stipulated timeline. Subsequently, the Operational Creditor filed another application (IA(IBC)/132/KOB/2021) to condone the delay in depositing the costs, enclosing proof of payment made through Bharatkosh. The Tribunal allowed the application to condone the delay, considering the compliance with the payment requirement.

Issue 3: Final Decision and Order
Upon reviewing the pleadings and considering the compliance with the procedural requirements, the Tribunal, in its order dated October 6, 2021, allowed the withdrawal of the Company Petition (CP(IB)/03/KOB/2021). The Tribunal emphasized that the Applicant had fulfilled the conditions set forth, including the payment of costs, leading to the allowance of the withdrawal application.

In conclusion, the Tribunal granted the withdrawal of the Company Petition based on the Operational Creditor's application under Section 60(5) of the IBC, 2016, after addressing the maintainability concerns raised by the Respondent/Corporate Debtor. The compliance with procedural requirements, particularly the payment of costs, played a crucial role in the final decision to allow the withdrawal of the petition.

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