# 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-00803. This is a Miscellaneous Application (MA 3472/2019) filed in CP(IB)-2204/MB-IV/2019 under…

- **Court:** NCLT
- **Order date:** 25 Oct 2019
- **Citation:** TCN-2019-NCLT-00803
- **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-2019-7d7cec7e

## Summary

### Background

This is a Miscellaneous Application (MA 3472/2019) filed in CP(IB)-2204/MB-IV/2019 under section 12A of the Insolvency & Bankruptcy Code, 2016 (IBC) by Sandeep Jawaharlal Singhal, the Interim Resolution Professional (IRP) appointed vide order dated 22.10.2019, for withdrawal of the Company Petition filed under section 9 of the IBC by Mayur Wovens Private Limited against Audax Protective Fabrics Private Limited for initiating CIRP. The Operational Creditor sought to withdraw the Company Petition No. 2204/2019 and recall the CIRP ordered in Audax Protective Fabrics Pvt. Ltd. vide order dated 22.10.2019.

## Facts

Mayur Wovens Private Limited, an Operational Creditor, filed a Company Petition (CP(IB)-2204/MB-IV/2019) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Audax Protective Fabrics Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). An Interim Resolution Professional (IRP), Sandeep Jawaharlal Singhal, was appointed on 22.10.2019. Subsequently, the Operational Creditor filed a Miscellaneous Application (MA 3472/2019) under Section 12A of the IBC to withdraw the Company Petition. The IRP had taken charge and issued a public advertisement. The Operational Creditor received a payment of Rs.7,63,821/- by RTGS on 24.10.2019. The Corporate Debtor has 850 employees. The Corporate Debtor was ordered to pay Rs. 2.0 lakhs to

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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 an

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**Reasoning:** The court considered the submissions of the parties, including the fact that the

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**Interpretation:** Section 12A provides a mechanism for withdrawal of insolvency proceedings if

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**Application:** In this case, the Operational Creditor sought to withdraw the petition after

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Sandeep Jawaharlal…
- **Respondents:** Audax Protective…; Mayur Wovens…

## Timeline

- **2019-10-22 — Order Da…**: Order appointing Sandeep Jawaharlal Singhal…
- **2019-10-24 — Payment Re…**: Operational Creditor received…

## 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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