# 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-00819. This is a Miscellaneous Application (MA 3472/2019) filed under section 12A of the Insolvency &…

- **Court:** NCLT
- **Order date:** 25 Oct 2019
- **Citation:** TCN-2019-NCLT-00819
- **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-c29c457f

## Summary

### Background

This is a Miscellaneous Application (MA 3472/2019) filed under section 12A of the Insolvency & Bankruptcy Code, 2016 (IBC) by the Interim Resolution Professional (IRP), Sandeep Jawaharlal Singhal, for withdrawal of the Company Petition [CP(IB)-2204/MB/2019] filed under section 9 of the IBC 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 Corporate Debtor's counsel requested the Bench to consider the matter urgently, even though the MA was not listed for the day.

## Facts

Mayur Wovens Private Limited, an Operational Creditor, filed a Company Petition [CP(IB)-2204/MB/2019] under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Audax Protective Fabrics Private Limited for initiating CIRP. Sandeep Jawaharlal Singhal was appointed as the Interim Resolution Professional (IRP) vide order dated 22.10.2019. The IRP filed a Miscellaneous Application (MA 3472/2019) under Section 12A of the IBC for withdrawal of the Company Petition. The Operational Creditor received a payment of Rs.7,63,821/- by RTGS on 24.10.2019. The Corporate Debtor has 850 direct and indirect employees. The IRP took charge on 22.10.2019 and issued a public advertisement on 25.10.2019. The present MA u/s 12A for withdrawal of the CIRP has been filed within

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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 IBC allows for the withdrawal of an application admitted under Section

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**Reasoning:** The court considered the submissions of the IRP and the Corporate Debtor, noting that the

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

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**Application:** Since the Operational Creditor received payment and both parties requested the

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** Sandeep Jawaharlal…
- **Respondents:** Audax Protective…; Mayur Wovens…

## Timeline

- **2019-10-22 — IRP Appoi…**: Sandeep Jawaharlal Singhal appointed as…
- **2019-10-22 — IRP Takes…**: IRP took charge on the…

## 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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