# In the matter of The Cosmos Co-op Bank Ltd. Vs. M/s Crystal Clear Veg Oil Refinery Pvt. Ltd.,Company Appeal (AT)(Ins) No. 247 of 2021

> NCLAT judgment dated 2022-11-17. Citation: TCN-2022-NCLAT-00091. The Cosmos Co-op Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) under…

- **Court:** NCLAT
- **Order date:** 17 Nov 2022
- **Citation:** TCN-2022-NCLAT-00091
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/the-cosmos-co-op-bank-ltd-vs-ms-crystal-clear-veg-oil-refinery-pvt-ltdcompany-ap-71da99c4

## Summary

### Background

The Cosmos Co-op Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) under Section 7 of the I&B Code, 2016 against M/s Crystal Clear Veg Oil Refinery Private Ltd. The Adjudicating Authority (NCLT, Mumbai) admitted the application on 16.04.2018 and appointed an Interim Resolution Professional (IRP). The IRP took charge, prepared a list of creditors, and constituted the Committee of Creditors (CoC). The Appellant, being a financial creditor with 93.2% voting share in the CoC, decided to withdraw the CIRP proceedings and issued Form-A dated 03.03.2019 seeking withdrawal. The matter was discussed in the 15th CoC meeting on 04.04.2019, and the IRP was requested to file an application for withdrawal under Section 12A of the Code. The Adjudicating

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## Facts

The Cosmos Co-op Bank Limited, the Appellant, initiated CIRP against M/s Crystal Clear Veg Oil Refinery Private Ltd., the Corporate Debtor, under Section 7 of the I&B Code, 2016. The Adjudicating Authority admitted the application on 16.04.2018 and appointed an IRP. The IRP took charge, prepared a list of creditors, and constituted the CoC. The Appellant, holding 93.2% voting share in the CoC, decided to withdraw the CIRP proceedings due to an unviable resolution plan. The Appellant issued Form-A dated 03.03.2019 seeking withdrawal. The 15th CoC meeting on 04.04.2019 approved the withdrawal, and the IRP was requested to file an application under Section 12A of the Code. The Adjudicating Authority rejected the withdrawal application, stating dissatisfaction with the

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## Issues and analysis

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

**Ratio:** Section 12A of the I&B Code, 2016, read with Regulation 30A of the Insolvency and

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**Reasoning:** The NCLAT noted that the Adjudicating Authority failed to appreciate that the Appellant,

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP proceedings if a

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**Application:** In this case, the CoC, with a 93.2% voting share, approved the withdrawal. The

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## Parties

- **Judges:** Anant Bijay…; Kanthi Na…; +1 more
- **Appellants:** The Cosmos Co-Op…
- **Respondents:** M/s Crystal Clear…
- **Advocates:** Ninad…; Ivo D’C…; +6 more

## Timeline

- **2018-04-16 — CIRP Init…**: Adjudicating Authority admitted the…
- **2018-04-24 — IRP Takes…**: IRP took charge and…

## 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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