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ARTICLE · 01 APRIL 2019

Between The Lines... March, 2019

Vaish Associates Advocates
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SBM Paper Mills Limited ("Corporate Debtor") filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 ("IBC") to initiate the CIRP for itself.

IndiaInsolvency/Bankruptcy/Re-Structuring
Vijay Pal Dalmia
Vijay Pal Dalmia
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Article by Vijay Pal Dalmia, Advocate, Supreme Court of India and Delhi High Court, Partner & Head of Intellectual Property Laws Division, Vaish Associates Advocates, India

I. NCLT Mumbai allows late stage withdrawal of insolvency application; imposes cost on the applicant

In the matter of SBM Paper Mills Limited (decided on December 20, 2018), the National Company Law Tribunal, Mumbai ("NCLT") allowed the withdrawal of a corporate insolvency resolution process ("CIRP") application even after the resolution plan was accepted by the committee of creditors ("CoC").

Facts

SBM Paper Mills Limited ("Corporate Debtor") filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 ("IBC") to initiate the CIRP for itself. The application was admitted, a moratorium was declared and the insolvency resolution professional ("RP") was appointed. A CoC was formed with only one financial creditor being Allahabad Bank. When the expression of

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