# In the matter of Adarsh Snacks Private Limited Company Application No. 381-ALD-2019 in Company Petition No. 334-ALD-2018

> NCLT judgment dated 2020-01-28. Citation: TCN-2020-NCLT-02163. The case pertains to Company Petition No. 334/ALD/2018, initiated under Section 9 of the…

- **Court:** NCLT
- **Order date:** 28 Jan 2020
- **Citation:** TCN-2020-NCLT-02163
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adarsh-snacks-private-limited-company-application-no-381-ald-2019-in-company-pet-d712a424

## Summary

### Background

The case pertains to Company Petition No. 334/ALD/2018, initiated under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Operational Creditor, M/s Jayesh Tradex Private Limited, filed the petition against the Corporate Debtor, M/s Adarsh Snacks Private Limited, due to operational dues. The Applicant was appointed as the Interim Resolution Professional (IRP). The IRP received only one claim from the Operational Creditor, constituting the Committee of Creditors (COC). Subsequently, the Operational Creditor sought to withdraw the application under Section 12A of the IBC, submitting Form FA. The COC approved the withdrawal with 100% approval, and the suspended Directors paid a sum towards estimated costs.

## Facts

M/s Jayesh Tradex Private Limited, the Operational Creditor, initiated insolvency proceedings against M/s Adarsh Snacks Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was filed as Company Petition No. 334/ALD/2018. Manish Agarwal was appointed as the Interim Resolution Professional (IRP). The IRP received only one claim from the Operational Creditor, amounting to Rs 9,74,816/-, which constituted the entire voting rights in the Committee of Creditors (COC). The IRP convened multiple meetings of the COC. Subsequently, the Operational Creditor filed Form FA seeking withdrawal of the application under Section 12A of the IBC. The COC approved the withdrawal with 100% approval. The suspended Directors paid

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Company Petition No. 334/ALD/2018 under Section 12A …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of an

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**Reasoning:** The court considered that the Operational Creditor, being the sole claimant, had approved

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**Interpretation:** Section 12A provides a mechanism for withdrawal of insolvency applications,

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**Application:** In this case, the Operational Creditor, being the sole member of the COC,

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** Manish Ag…
- **Respondents:** M/s Adarsh Snacks…; M/s Jayesh Tradex…

## Timeline

- **2018-01-01 — Company Petiti…**: M/s Jayesh Tradex Private Limited filed Company Petition (IB)-334/ALD/2018 against M/s…
- **2019-05-21 — CIRP Commen…**: Corporate Insolvency Resolution process against the Corporate Debtor was commenced under…

## 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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