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ONE PAGE # 25 – Oren Hydrocarbons Pvt Ltd Vs Akzo Nobel Industrial Chemicals BV

ONE PAGE # 25 – Oren Hydrocarbons Pvt Ltd Vs Akzo Nobel Industrial Chemicals BV
Due procedure of Law must be followed for withdrawal of application u/s 12A
Court:  NCLT Chennai & NCLAT Chennai Bench AT# 24/2021 Dt 26.03.2021

1. Facts of the Case:

a. Section 9 application filed by Akzo Nobel Industrial Chemicals BV (OC) against Oren Hydrocarbons Pvt Ltd (CD) was admitted by NCLT.

b. Promoter initially filed the instant appeal against that admission order but later seeks permission of NCLAT to withdraw the same with a liberty to file an Application u/s 12A before NCLT.

c. But when there was delay in settlement between the both parties & the withdrawal application was directly filed by CD to NCLT, NCLT directed the Appellant to seek clarifications on the NCLAT order dt. 26.03.2021.

2. Discussions & Judgment by NCLT & NCLAT:

a. AT#24/2021 dt: 26.03.2021:): NCLAT…

i. granted liberty to CD to file application u/s 12A before NCLT within 10 days (ie till 05.04.2021) & to seek redressal of its grievances.

ii. directed NCLT to dispose the application as expeditiously as possible, in accordance with law  

iii. directed RP to not constitute the COC, if not already constituted till the CD files the withdrawal application u/s 12A.

b. 298/CHE/2021 of IBA/938/2019 by NCLT Chennai:

i. Based on the permission granted by NCLAT, Promoter directly filed an IA 298 on 01.04.2021, before NCLT, stating that NCLAT consented to him to filing 12A application and since IRP took over the management of the CD, they are not in position to transfer the amount and make settlement with OC.

ii. COC was not constituted by the time NCALT order AT# 24/2021 was given. After passage of 10days, on 12.04.2021, COC was constituted by the RP.

iii. CD made full payment on 27.04.2021 and the OC was ready to withdraw the case. Now that the COC is formed, FC insists that the due process has to be followed for withdrawal of the application u/s 12A & 30A of CIP regulations.

iv. NCLT, then, in its order dt 15.04.2021 directed the Appellant to seek clarifications on Para 3 & 4 of the order in AT#24/2021.

c. IA95 of AT#24/2021:

i. NCLAT on 26.03.2021 clearly stated that in the event Appellant files 12A application within the time granted, the same shall be taken on file by NCLT.

ii. IRP/RP must file the withdrawal application U/S 12A as per Reg 30A to the IRP in form FA.

iii. NCLT is directed to dispose the application expeditiously on merits, following the lawful procedure. IA disposed with no costs.

MS Mano Ranjani

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