O R D E R

Authority: National Company Law Tribunal Kochi Bench (Shri Vinay Goel, Member (Judicial) and Shri Ravichandran Ramasamy, Member (Technical))

Order Date: 17 July 2026

Case Overview

This matter concerns Interlocutory Application IA(IBC)/313/KOB/2026 in main petition CP(IBC)/33/KOB/2023 involving M/s Air Travel Enterprises India Ltd. under insolvency proceedings. The application was filed by Union Bank of India (Financial Creditor) seeking withdrawal of the main insolvency petition on grounds that the account had been closed under a One-Time Settlement (OTS) scheme. The respondent through counsel confirmed that the entire OTS amount of Rs. 6.95 crores had been paid in full to the Financial Creditor and that any appeal pending before NCLAT had been withdrawn.

The Tribunal initially found no legal impediment to allow withdrawal and orally directed the applicant to pay the Resolution Professional's fees and expenses, with a compliance memo to be filed within seven days. However, within five minutes of this oral pronouncement, the Resolution Professional Mr. Rajmohan R appeared through virtual mode along with counsel Mr. A C Venugopal and revealed that the withdrawal application had been filed by Union Bank of India without obtaining concurrence from other Financial Creditors. The RP further disclosed that this issue had been discussed in a Committee of Creditors (CoC) meeting held just yesterday.

Final Outcome

The Bench recalled its unsigned oral order based on the material non-disclosure regarding the CoC status and lack of concurrence from all financial creditors. Citing the Supreme Court precedent in Fakir Mamad Suleman Sameja & Others v. Adani Ports and Special Economic Zone Ltd. & Others (MA No. 1276/2026 in CA No.536/2026), which allows modification of orally pronounced orders before signing if errors of law or fact exist, the Tribunal deemed it fair and judicious to recall the order. The matter has been relisted for hearing on 20 July 2026 for proper consideration of the withdrawal application.

Topics: Insolvency Proceedings, Committee of Creditors, Withdrawal Application