# In the matter of Cedar Infonet Pvt. Ltd. (IB)-950(PB)-2018

> NCLT judgment dated 2019-09-19. Citation: TCN-2019-NCLT-01373. This case involves an application under Section 12A for the withdrawal of the Corporate…

- **Court:** NCLT
- **Order date:** 19 Sept 2019
- **Citation:** TCN-2019-NCLT-01373
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cedar-infonet-pvt-ltd-ib-950pb-2018-0c6e54e4

## Summary

### Background

This case involves an application under Section 12A for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against Cedar Infonet Pvt. Ltd. The CIRP was initially admitted based on a petition filed under Section 7 of the Insolvency & Bankruptcy Code (IBC) by L & T Finance Ltd. The Committee of Creditors (CoC) considered the issue of liquidation or withdrawal of the CIRP in its 3rd meeting. The CoC resolved to withdraw the application with a voting share of 93.66%.

## Facts

L & T Finance Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against Cedar Infonet Pvt. Ltd. under Section 7 of the Insolvency & Bankruptcy Code (IBC). The CIRP was admitted on 2019-07-10/2019-07-22. L & T Finance Ltd. was a member of the Committee of Creditors (CoC) with a voting share of 7.85%. Edelweiss Asset Reconstruction held the major shareholding in the CoC with 85.81%. The CoC, in its 3rd meeting on 2019-09-13, considered the liquidation of the corporate debtor or withdrawal of the CIRP. The CoC resolved to withdraw the CIRP application under Section 12A with a voting share of 93.66%. The corporate debtor, Cedar Infonet Pvt. Ltd., had hardly any assets and no registered office. The business of the Corporate Debtor is closed and there

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** The legal principle is that the Committee of Creditors (CoC) has the authority to decide

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**Reasoning:** The court reasoned that the CoC, representing the creditors, had resolved to withdraw the

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**Interpretation:** Section 12A is interpreted to provide flexibility in the CIRP process, allowing

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**Application:** In this case, the CoC's decision to withdraw the CIRP, supported by a 93.66%

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** L & T Finan…
- **Respondents:** Cedar Infonet…

## Timeline

- **2018-01-01 — CP No. (IB)-950…**: Corporate Insolvency Resolution Process initiated by admission of CP. No.…
- **2019-07-10 — Admission o…**: CP. No. (IB)-950(PB)/2018 admitted on 2019-07-10/2019-07-22 under Section 7 of Insolvency…

## 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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