# In the matter of Fomra Sales Private Limited IA-614-Che-2021 in IBA-1115-2019

> NCLT judgment dated 2021-08-06. Citation: TCN-2021-NCLT-01419. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 6 Aug 2021
- **Citation:** TCN-2021-NCLT-01419
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fomra-sales-private-limited-ia-614-che-2021-in-iba-1115-2019-67bfcde9

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Fomra Sales Private Limited. The CIRP was initially triggered by an Operational Creditor under Section 9 of the IBC, 2016, and the Tribunal admitted the petition on 27.04.2021, appointing an Interim Resolution Professional (IRP). Subsequently, the Operational Creditor decided to withdraw the CIRP, and the Committee of Creditors (CoC), consisting solely of the Operational Creditor, passed a resolution for withdrawal.

## Facts

An application was filed for the withdrawal of the CIRP against M/s. Fomra Sales Private Limited. The CIRP was initially initiated based on an application by an Operational Creditor under Section 9 of the IBC, 2016. The Tribunal admitted the petition on 27.04.2021 and appointed B. Sathrukkanan as the IRP. A public announcement was made on 29.04.2021 and 30.04.2021. The IRP received claims from two creditors: Nangalwala Industries Private Limited and Fomra Cables and Electricals. The first CoC meeting was held on 25.05.2021, with the Operational Creditor as the sole member. The Operational Creditor then decided to withdraw the CIRP, and a compromise memo was executed on 30.06.2021 for Rs.5,00,000. The Corporate Debtor paid the Operational Creditor on 22.06.2021. The CoC

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP against M/s. Fomra Sales Private Limited should …

**Ratio:** Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons)

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**Reasoning:** The court considered the submissions of the Learned Counsel, the averments in the

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**Interpretation:** Regulation 30A provides a mechanism for withdrawing CIRP proceedings when

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**Application:** In this case, the Operational Creditor and Corporate Debtor reached a

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** B. Sathru…
- **Respondents:** M/s. Fomra Sales…

## Timeline

- **2019-01-01 — IBA/1115/2019…**: Filing of IBA/1115/2019 by…
- **2021-04-27 — CIRP Init…**: Tribunal admits the petition and…

## 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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