# In the matter of Vijay Saini & Ors. vs. Shri Devender Singh & Ors.

> NCLAT judgment dated 2024-02-16. Citation: TCN-2024-NCLAT-00629. These are three appeals arising out of the Corporate Insolvency Resolution Process (CIRP) of…

- **Court:** NCLAT
- **Order date:** 16 Feb 2024
- **Citation:** TCN-2024-NCLAT-00629
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vijay-saini-ors-vs-shri-devender-singh-ors-9f8bf0aa

## Summary

### Background

These are three appeals arising out of the Corporate Insolvency Resolution Process (CIRP) of 'Sidhartha Buildhome Pvt. Ltd.'. Company Appeal (AT) (Insolvency) No. 791 of 2023 was filed by Mr. Devendra Singh, the Resolution Professional, challenging the order dated 24.05.2023, which allowed IA No.753 of 2023 filed by the Homebuyers of Sidhartha Buildhome Pvt. Ltd., accepting a proposal under Section 12A of the Insolvency and Bankruptcy Code (IBC) permitting withdrawal of the CIRP. Company Appeal (AT) (Insolvency) No. 982 of 2023 was filed by a Homebuyer challenging the same order. Company Appeal (AT) (Insolvency) No. 1194 of 2023 was filed by a homebuyer challenging the order dated 13.07.2023, which dismissed IA No.779 of 2023 filed by Vijay Saini and other homebuyers

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sidhartha Buildhome Pvt. Ltd. based on an application under Section 7 of the IBC by Oriental Bank of Commerce (now merged with Punjab National Bank). The Resolution Professional issued Form-G twice, receiving two Resolution Plans and a proposal under Section 12A for withdrawal submitted by Mr. Sidharth Chauhan, the Promoter/Director. In the 18th CoC meeting on 15.02.2022, both Resolution Plans and the withdrawal proposal were rejected. In the 27th CoC meeting on 10.01.2023, the Resolution Plan of Alpha Corp Development Pvt. Ltd. and the withdrawal proposal of Mr. Sidharth Chauhan were discussed and voted upon. The e-voting, conducted from 14.01.2023 to 18.01.2023, resulted in the rejection of the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in approving the withdrawal proposal under Section 12A of …

**Ratio:** Section 12A of the IBC mandates that a withdrawal of an application admitted under

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**Reasoning:** The Adjudicating Authority misinterpreted the voting requirements under Section 12A,

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP, but it imposes a high

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**Application:** In this case, the proposal under Section 12A received only 52.57% of the votes,

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Vijay S…
- **Respondents:** Sidhartha…; Devender Singh &…

## Timeline

- **2021-03-04 — CIRP Commen…**: CIRP against Sidhartha Buildhome Pvt. Ltd. commenced based on Section 7 application by…
- **2022-02-15 — Rejection of Resolution…**: Both Resolution Plans and Section 12A withdrawal proposal rejected in the 18th CoC…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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