# In the matter of C-Tel Infosystems Pvt. Ltd. IA-4639 & 5317-2020 in (IB)-295(ND)-2019

> NCLT judgment dated 2021-02-18. Citation: TCN-2021-NCLT-03018. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 18 Feb 2021
- **Citation:** TCN-2021-NCLT-03018
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/c-tel-infosystems-pvt-ltd-ia-4639-5317-2020-in-ib-295nd-2019-d7cb713b

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against C-TEL INFOSYSTEMSPRIVATE LIMITED. The CIRP was initiated based on an application by PVM INNVENSYS PRIVATE LIMITED, an operational creditor. An appeal against the initiation of CIRP was filed by Mr. K. Srinivas Krishna, the suspended director of the corporate debtor, before the NCLAT. The NCLAT granted an interim stay on the constitution of the Committee of Creditors (CoC) and advised the parties to settle the matter. Subsequently, the NCLAT passed an order stating that the operational creditor's claim was not tenable and vacated the interim stay, directing the IRP to take further action. The CoC was constituted with State Bank of India as the sole

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## Facts

1. PVM INNVENSYS PRIVATE LIMITED initiated CIRP against C-TEL INFOSYSTEMSPRIVATE LIMITED.
2. Shyam Arora was appointed as the Interim Resolution Professional (IRP).
3. An appeal was filed by Mr. K. Srinivas Krishna, the suspended director, before the NCLAT.
4. The NCLAT granted an interim stay on the constitution of the CoC and advised settlement.
5. The NCLAT later vacated the stay and directed the IRP to proceed with the CIRP.
6. The CoC was constituted with State Bank of India as the sole financial creditor.
7. The IRP filed an application for withdrawal of the CIRP under Section 12A of the IBC.
8. The Operational Creditor objected to the withdrawal application, claiming outstanding dues.
9. The CoC approved the withdrawal with 100% voting share.
10. Axis Bank's claim was

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of the IBC is maintainable when …

**Ratio:** Section 12A of the IBC and Regulation 30A of the IBBI (Corporate Insolvency Resolution)

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**Reasoning:** The Adjudicating Authority (NCLT) interpreted Section 12A and Regulation 30A to mean that

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**Interpretation:** The interpretation of Section 12A and Regulation 30A is strict, requiring the

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**Application:** In this case, the application for withdrawal was filed by the IRP, not by PVM

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** PVM INNVENSYS…
- **Respondents:** C-TEL INFOSYSTEMSP…; C-Tel Infosystems…

## Timeline

- **2020-01-23 — CIRP Init…**: Adjudicating Authority initiated…
- **2020-01-01 — IRP Appoi…**: Shyam Arora was appointed as 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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