# In the matter of Fortis Clinical Research Ltd. (IB)-617(ND)2018

> NCLT judgment dated 2018-11-30. Citation: TCN-2018-NCLT-00242. CA 696/2018 was filed by the Resolution Professional (RP) under Section 12A of the Code,…

- **Court:** NCLT
- **Order date:** 30 Nov 2018
- **Citation:** TCN-2018-NCLT-00242
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fortis-clinical-research-ltd-ib-617nd2018-fcb69df0

## Summary

### Background

CA 696/2018 was filed by the Resolution Professional (RP) under Section 12A of the Code, seeking termination of the Insolvency Resolution Process (IRP) of the Corporate Debtor. The Committee of Creditors (COC) comprised only one Operational Creditor, M/s. Sun Pharmaceuticals Pvt. Ltd. A resolution to this effect was passed in the meeting of the Committee of Creditors held on October 25, 2018. The resolution was placed on record along with Form FA, with the application for withdrawal of the CIR Resolution Process.

## Facts

The Resolution Professional (RP) filed CA 696/2018 under Section 12A of the Insolvency and Bankruptcy Code (IBC) seeking termination of the Corporate Insolvency Resolution Process (CIRP) for the Corporate Debtor. The Committee of Creditors (COC) consisted of only one Operational Creditor, M/s. Sun Pharmaceuticals Pvt. Ltd. The COC passed a resolution on October 25, 2018, to terminate the CIRP. The resolution was submitted with Form FA, requesting withdrawal of the CIR Resolution Process. The RP submitted that he was not pressing other prayers in the application. The COC's decision to terminate the CIR process was unanimous, with 100% in value voting in favor.

## Issues and analysis

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

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC) allows for the withdrawal of the

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**Reasoning:** The court considered the fact that the COC, consisting of a single operational creditor,

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**Interpretation:** Section 12A provides a mechanism for the COC to withdraw the CIRP, reflecting

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**Application:** In this case, the COC, consisting of M/s. Sun Pharmaceuticals Pvt. Ltd.,

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## Parties

- **Judges:** Deepa Kr…; Ina Mal…; +1 more
- **Respondents:** Fortis Clinical…

## Timeline

- **2018-10-25 — COC Meet…**: The Committee of Creditors (COC) held a meeting and passed a resolution to terminate the…
- **2018-11-30 — NCLT Hea…**: The National Company Law Tribunal (NCLT) heard the application for termination of 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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