# In the matter of Mr. K. Srinivas Krishna Vs. Shyam Arora & Ors. Company Appeal (AT) (Insolvency) No. 221 of 2021

> NCLAT judgment dated 2021-09-02. Citation: TCN-2021-NCLAT-00110. The case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 2 Sept 2021
- **Citation:** TCN-2021-NCLAT-00110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-k-srinivas-krishna-vs-shyam-arora-ors-company-appeal-ff576a66

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal) dismissing an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC). The CIRP was initiated against C-Tel Infosystems Pvt. Ltd. based on an application filed by PVM Innvensys Pvt. Ltd., an Operational Creditor. The Interim Resolution Professional (IRP) was appointed, and subsequently, the Committee of Creditors (CoC) was formed with State Bank of India as the sole Financial Creditor. The Corporate Debtor satisfied the claim of State Bank of India, and the CoC approved the resolution for withdrawal of the application under Section 9 of the IBC. The IRP filed an

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## Facts

C-Tel Infosystems Pvt. Ltd. faced Corporate Insolvency Resolution Process (CIRP) initiated by Operational Creditor PVM Innvensys Pvt. Ltd. under Section 9 of IBC. The Adjudicating Authority admitted the application on 23.01.2020. Shyam Arora was appointed as the Interim Resolution Professional (IRP). PVM Innvensys Pvt. Ltd. had two claims: Rs. 50,32,028 and Rs. 3,67,200. The Appellate Tribunal previously ruled that the claim of Rs. 50,32,028 was not maintainable. The Corporate Debtor satisfied the claim of the Financial Creditor, State Bank of India (Rs. 12,66,000). The Committee of Creditors (CoC) approved the withdrawal of the CIRP application with 100% voting share. The IRP filed an application for withdrawal under Section 12A of IBC, but the Operational Creditor

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the application for withdrawal of CIRP …

**Ratio:** Section 12A of the IBC stipulates that the application for withdrawal must be filed by

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**Reasoning:** The Adjudicating Authority rejected the application based on a literal interpretation of

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**Interpretation:** While Section 12A requires the original applicant to file the withdrawal

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**Application:** In this case, the Corporate Debtor had satisfied the admitted claim of the

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## Parties

- **Judges:** Jarat Kuma…; Ashok Kumar…
- **Appellants:** K. SRINIVAS…
- **Respondents:** C-Tel, Infosystems…; C-Tel Infosystems…; +1 more

## Timeline

- **2020-01-23 — CIRP Init…**: Adjudicating Authority admitted the application under Section 9 of the IBC filed by PVM…
- **2020-09-25 — Appellate Tribu…**: Appellate Tribunal held that the claim of Rs. 50,32,028/- by PVM Innvensys Pvt. Ltd. is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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