# In the matter of Audax Protective Fabrics Private Limited MA 3472-2019 in CP (IB)-2204-MB-IV-2019

> NCLT judgment dated 2019-10-25. Citation: TCN-2019-NCLT-00813. The case involves a Miscellaneous Application (MA 3472/2019) filed in CP(IB)-2204/MB-IV/2019…

- **Court:** NCLT
- **Order date:** 25 Oct 2019
- **Citation:** TCN-2019-NCLT-00813
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/audax-protective-fabrics-private-limited-ma-3472-2019-in-cp-ib-2204-mb-iv-2019-7540f54b

## Summary

### Background

The case involves a Miscellaneous Application (MA 3472/2019) filed in CP(IB)-2204/MB-IV/2019 under Section 12A of the Insolvency & Bankruptcy Code, 2016, by Sandeep Jawaharlal Singhal, the Interim Resolution Professional (IRP) of Audax Protective Fabrics Private Limited. The application seeks withdrawal of the Company Petition filed by Mayur Wovens Private Limited against Audax Protective Fabrics Private Limited for initiating Corporate Insolvency Resolution Process (CIRP). The IRP was appointed vide order dated 22.10.2019. The Operational Creditor received a payment of Rs. 7,63,821/- by RTGS on 24.10.2019.

## Facts

Mayur Wovens Private Limited filed a company petition against Audax Protective Fabrics Private Limited under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate CIRP. Sandeep Jawaharlal Singhal was appointed as the Interim Resolution Professional (IRP). The Adjudicating Authority ordered the initiation of CIRP on 22.10.2019. Subsequently, the Operational Creditor, Mayur Wovens Private Limited, received a payment of Rs. 7,63,821/- from Audax Protective Fabrics Private Limited on 24.10.2019. Sandeep Jawaharlal Singhal, the IRP, then filed a Miscellaneous Application (MA 3472/2019) under Section 12A of the IBC seeking withdrawal of the company petition. The Corporate Debtor has 850 employees. The IRP took charge on 22.10.2019 and issued a public

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## Issues and analysis

### Issue 1: Whether the Miscellaneous Application filed under Section 12A of the Insolvency & Bankruptcy …

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

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**Reasoning:** The court considered the fact that the Operational Creditor had received the payment and

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**Interpretation:** Section 12A provides a mechanism for settling disputes and withdrawing CIRP

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**Application:** The court applied the principle of Section 12A by considering the settlement

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** Sandeep Jawaharlal…
- **Respondents:** Audax Protective…; Mayur Wovens…
- **Advocates:** Nithish B…; Shyam Ka…

## Timeline

- **2019-10-22 — Order for CIRP…**: The Adjudicating Authority ordered the initiation of CIRP against Audax Protective…
- **2019-10-22 — IRP Takes…**: Sandeep Jawaharlal Singhal, the IRP, took charge on the same day as the CIRP initiation…

## 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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